Russia to Switch from Tourist Tax to Hotel Tax in 2023

UrBC, Moscow, April 3, 2019. Russia’s Finance Ministry proposed a series of amendments to Russia’s Fiscal Code, including the switch from the tourist tax to the hotel tax in 2023. The proposal is now available at regulation.gov.ru.

Companies and private individuals dealing in accommodation/hotel services will all have to pay the tax.

However, companies and private individuals dealing in children’s healthcare and recreation services are expected to be tax-exempt, as are sole traders operating on a tax patent scheme and private individuals on the Earned Income Tax scheme.

The amount of tax will get determined through normative acts issued by town councils but will have to stay under RUB 100 per hotel guest a day. The tax may fluctuate depending on season, hotel category and/or location, and the purpose the accommodation gets used for.

‘The proposed new approach to taxing stems from the local budgets’ need to get extra sources of revenue through taxing hotels and other types of accommodation in resort locations and other places,’ the proposal explains.


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