Government introduces VAT cashback and documentation-free procurement for restaurants, cafes, and hotels

The president highlighted that the biggest challenges for public catering and hotel services are VAT and employee accounting.

Therefore, from January 1, a portion of the VAT will be refunded to entrepreneurs as cashback. For businesses that conduct 60% of their monthly turnover without cash, 40% of the VAT will be refunded immediately after payment. If the non-cash turnover is less than 60%, the cashback will be 20%.

Restaurants and cafes that switch to VAT payment will have their profit tax halved. Starting from December 1, these businesses will not be required to provide any documentation for the entry of agricultural products purchased in cash. They will also be allowed to set up tables, chairs, and umbrellas in adjacent areas during the spring and summer seasons. Restaurants and cafes will be able to sign short-term, simplified labor contracts with employees.

Similarly, starting from October 1, 20% of the VAT paid by hotels and tour operators will be refunded as cashback.

Additionally, seven exclusive rights for market entry will soon be abolished, creating opportunities for more than 1,500 entrepreneurs to enter the market.

Furthermore, any company with accreditation will be able to engage in hotel certification activities. From October 1, just like the Entrepreneurship Rating, the “Transparent Construction” system at the Ministry of Construction will be managed by the entrepreneurs themselves. The functions of consulting centers will be fully transferred to the private sector.

The president also stated that if entrepreneurs make proposals, the government is ready to transfer other services currently provided by state agencies to the private sector.