Moldova plans to increase VAT for HoReCa sector
Moldova plans to increase VAT for HoReCa sector
The Moldovan government is preparing an increase in the value added tax (VAT) rate for the HoReCa sector, which includes restaurants, cafes, bars and hotels. If the initiative is approved, the cost of services in these institutions may increase in the coming months.
VAT increase from the current 8% to 18%. This will lead to an increase in the cost of restaurant and hotel services by about 2-5%, depending on the category of the establishment and the volume of services provided. The HoReCa sector in Moldova has more than 4,500 establishments employing about 35,000 employees, which makes the changes in tax policy significant for the economy and employment.
Prime Minister Alexandre Munteanu commented on the initiative.:
"We consider the VAT increase as part of a comprehensive strategy to increase budget revenues and ensure the sustainability of government programs. At the same time, we are closely monitoring the impact on business and the price level for the population."
He also added: "We understand that the tax increase affects restaurants and hotels, so support measures are provided for small and medium-sized enterprises to mitigate possible negative consequences." The changes in the framework of the "tax unification plan" are planned to be adopted by June. Munteanu called the current preferential rate "unfair," noting that visitors to establishments may well pay more.
Source: Telegram "moldavskii_piston"