Caterers request VAT on food to be reduced to 5 percent


Representatives of the Association of hospitality and tourism to the Economic Chamber of Macedonia initiated VAT reduction from 18 to 5 percent of food in hotels and restaurants, catering and hospitality incentives.

– The caterers request a way in which VAT on food is calculated to undergo corrections. The input elements are now calculated with 5 percent VAT, while output tax is 18 percent. Next time we will carry out concrete analysis and we will come out before the state institutions with facts on the situation and the requirements – stated representatives of the Chamber of Commerce for META.

According to the former president of the Association Snezhana Jovanovska, the tax reduction from 18 to 5 percent is unrealistic and it should be 12 percent.

– There are a number of measures that the country is currently undertaking in this sector. It is subsidizing foreign tourists and tour operators, makes marketing and promotional activities abroad, cut corporate travel services and therefore I think dropping from 18 to 5 percent is unrealistic. In order to help the sector, it is necessary to stop subsidizing tourists, but to subsidize tourist operators who signed an agreement to promote the state and brining foreign tourists once. A lot of money is spent, expenses are big and the income is small – feels Jovanovska.

Association offers other measures that will mean financial unloading the hotel and catering sector and indirect incentive for new investments and modernization of existing facilities.

According to the Strategy for development of tourism by 2020, revenues from this industry should amount to 5 percent of GDP.

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