The Commercial Court of Krasnodar Krai recently reviewed a case regarding the application of a 0% VAT rate for temporary accommodation at health resorts. “Pansionat Burgas” applied this 0% rate for its temporary accommodation services in 2023, but the tax inspectorate deemed this unlawful and reassessed the tax at 20%. The inspectorate argued that health resorts, unlike hotels, do not provide temporary accommodation services in a way that qualifies for the reduced VAT. The court sided with the inspectorate, stating that a three-star classification doesn’t preclude a facility from being a health resort and that classification certificates or separate income accounting don’t change the applicability of the 0% VAT rate.
Source: russiantaxandcustoms.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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