Starting today, December 16, when the state of emergency comes into force, the hospitality industry will benefit from a reduced VAT rate of 6%, IPN reports.

The law provides for the application of the reduced VAT rate for activities stipulated in the first section of the National Economic Nomenclature, hotels, restaurants or catering services, said expert in public policies in the hospitality industry Aneta Zasavitski, former president of the National Association of Restaurants and Leisure Facilities.

"The state of emergency in the energy sector, triggered by the explosive prices of gas and electricity, puts immense pressure on economic agents. In the absence of clear government subsidies for businesses, the reduced VAT rate remains a lifeline, even if it is insufficient for many in the field," Aneta Zasavitski wrote on her official page. This measure is instituted according to the law promoted in 2021, notes the source.

The Republic of Moldova is under a state of emergency for 60 days as from December 16.