---
title: "Moldova slashes HORECA VAT: 8% boost for tourism"
url: https://moldova1.md/p/22364/moldova-slashes-horeca-vat-8-boost-for-tourism
published: 2023-12-31T11:05:00Z
language: en
section: "Economic"
source: moldova1.md
---

# Moldova slashes HORECA VAT: 8% boost for tourism

> The conclusion of Moldova's nationwide state of emergency brings welcome relief for the hospitality and tourism sector (HORECA) in the form of a significantly reduced VAT rate.

The conclusion of Moldova's nationwide state of emergency brings welcome relief for the hospitality and tourism sector (HORECA) in the form of a significantly reduced VAT rate.

![](https://storage.moldova1.md/images/9e66a73c-7401-4e50-88e7-778857708651.jpg)

Effective today, businesses offering accommodation, food, and beverages will operate under an 8% VAT regime, down from the previously standard 12%.

*"This revised rate signifies a reduction in consumer costs and enhanced competitiveness for our businesses,"* declared the State Tax Service in an official statement. *"It aims to bolster the HORECA sector's post-pandemic recovery and contribute to its long-term resilience."*

The 8% VAT applies across all accommodation categories, encompassing hotels, villas, guesthouses, campsites, and vacation camps as defined in Section I of the Moldovan Economic Activities Classifier. Notably, the production of alcoholic beverages with associated immediate consumption services remains subject to the standard 20% VAT rate.

Businesses are required to update their cash register and control equipment to reflect the new 8% VAT rate. Until the equipment is programmed, recalculated VAT amounts must be recorded manually.

The reduced VAT rate for HORECA was initially introduced in August 2023 under Law No. 212/2023 as a temporary measure during the state of emergency. Its extension until December 30th provided temporary relief, but uncertainty shrouded its continuation beyond that date.

*"The confirmation of the 8% VAT rate for HORECA is a resounding victory for both entrepreneurs and employees,"* remarked Ion Chicu, president of the National Hotel and Restaurant Association. *"This tax relief offers crucial stability and fosters further investment in the industry."*

The government's decision underscores its commitment to supporting sectors disproportionately impacted by the state of emergency. With the tourism industry playing a vital role in Moldova's GDP, this tax cut holds potential to attract more tourists and generate fresh job opportunities in the coming year.

Translation by **Iurie Tataru**