State Tax Service of Ukraine informs about peculiarities of applying 7% VAT rate to provision of temporary accommodation (placement) services provided by hotels and similar means of temporary accommodation.
Clause 7 of Sub-paragraph “c” Paragraph 193.1 Article 193 Section V of the Tax Code of Ukraine (hereinafter – TCU) stipulates that reduced 7% VAT rate is applicable to provision of temporary accommodation (placement) services provided by hotels and similar means of temporary accommodation (class 55.10 group 55 of Classification of types of economic activity of the State Classifier 009:2010). This VAT rate is also defined in Paragraph 74 Sub-section 2 Section XX of the TCU.
At the same time, Paragraph 74 Sub-section 2 Section XX of the TCU is applicable to operations carried out starting from January 1, 2021 and is a norm of temporary effect until January 1, 2023.
Given the above specified, in 2023 and thereafter, the 7% VAT rate will continue to be applicable to provision of temporary accommodation (placement) services provided by hotels and similar means of temporary accommodation (class 55.10 group 55 of Classification of types of economic activity of the State Classifier 009:2010) according to Sub-paragraph “c” Paragraph 193.1 Article 193 of Section V of the TCU.