The government promises 5% VAT for hotels, restaurants, catering by the end of the year The Tourism Ministry has set several measures to improve tourism activity, such as a 5% reduction in VAT for accommodation and restaurants, and the elimination of royalties for thermal and mineral water in the spa sector, according to a press release issued by the institution. “The Ministry of Tourism has, in line with the Government’s Action Plan for September-December 2018, set out more measures to improve the tourism sector in Romania, including the application of the 5% VAT rate for areas such as accommodation in the hotel sector or similar-function sectors, including rental of camping grounds, restaurant and catering services, except for alcoholic beverages other than beer, sporting, recreational and entertaining activities,” officials said in the sector. Tourism will thus have the smallest share of VAT in all economic sectors. Another measure meant to stimulate the tourism in Romania, but also with effects on the health of the population, will be the unblocking of the spa tourism through zero fees for geothermal water and natural mineral water used for the consumption of the population at the public baths. In addition, local authorities and commercial companies will be able to access money from the investment fund, money specifically dedicated to the development and modernization of spa resorts. The Government’s estimate for the development of spa tourism provides for investments of at least EUR 1 billion through projects over the next 10 years. “The spa sector urgently needed these measures in the context of one third of Europe’s thermal and mineral springs being in our country,” the ministry said. Leave a Reply Cancel Reply Your email address will not be published.CommentName* Email* Website Save my name, email, and website in this browser for the next time I comment.