This was stated by the head of the ministry Maxim Reshetnikov during a meeting chaired by Russian President Vladimir Putin, RIA Novosti reports.
According to Reshetnikov, after the zeroing of VAT for hotels, for many rail and air transport, tourist operators have faced a problem.
“As a result, we have tour operators who actually purchase hotel rooms in bulk and order transportation, they still pay VAT themselves,” the minister explained.
He clarified that in this way tourist operators have “zero input VAT”, but they must pay an output tax of 20% of the total amount.
According to him, a proposal has been worked out to exempt tourism products from VAT, provided that these are domestic trips or inbound tourism.
Reshetnikov added that the measure is proposed to be launched retroactively - from January 1, 2023 - and extended until July 2027.
In November, the President of Russia instructed the Russian government to consider setting a zero VAT rate for tour operators.