The fact is that during a pandemic, a high tax rate leads to the low profitability of restaurants and catering, correspondingly to the decline of the industry.
Adoption of the bill will increase working capital in the restaurant business and catering services, which will be aimed at maintaining and developing the industry, as well as preserving jobs.
According to the Ukrainian Restaurant Association, more than a year since the start of the pandemic, at least 20% of all establishments have disappeared from the market.
The use of a high VAT rate of 20% on the implementation of restaurant and catering activities, during a pandemic, leads to unprofitability and the closure of restaurants and establishments.
Reducing the VAT rate will not only ensure a transparent 100% fulfillment of the budget in terms of tax revenues but will also allow controlling the dynamics of GDP.
The development of the country's economic relations in the direction of rapprochement with the European Union provides for the alignment of tax legislation with European-wide requirements. International practice in this matter indicates that the restaurant industry pays VAT to the budget at lower rates, namely from 5 to 11%.
