Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 10%; 16,67% |
The local name for VAT in Russia is Nalog na dobavlennuyu stoimost (NDS).
There are basically 3 VAT rates in Russia:
- Standard VAT rate is 20%
- Reduced VAT rate is 10% and 16,67%
Recent developments
For more information about (recent) rate change developments in Russia, please click here.
Standard rate: 20%
This rate applies for all transactions that take place in Russia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
- Exports of goods and related services including logistic services
- International freight-forwarding services
- Supplies to diplomats (if reciprocal arrangements apply)
- Foreign passenger transportation services
- Works (services) performed by Russian rail carriers involving the carriage or transportation of goods that are exported from the territory of the Russian Federation and the removal from the customs territory of the Russian Federation of products of processing in the customs territory of the Russian Federation
- Works (services) connected with carriage or transportation mentioned in the item above, the cost of which is specified in documents of carriage for the carriage of the goods that are exported (processed products that are removed)
- The sale of raw hydrocarbons extracted from the continental shelf, exclusive economic zone and the Russian sector of the Caspian Sea to a destination outside Russia and exportation of goods (stores) for further use in extraction of hydrocarbons from offshore hydrocarbon deposits and certain related transportation services
Supplies of goods and services exempted from VAT
- Financial services on granting of loans
- Rendering of services involving insurance, coinsurance and reinsurance of export credits and investments against entrepreneurial and/or political risks
- Public transport
- Medical services
- Lease of office premises and housing to accredited representative offices of foreign entities (if reciprocal arrangements apply)
- Sale of houses, living accommodation and shares in them
- Provision of exclusive rights or license rights to use with respect to soft-ware and databases included in the Unified Register of Russian software and databases (except for software or database allowing distribution of advertising on the internet and access to marketplaces) (effective from 1 January 2021)
- Services rendered by a developer under a shared-construction agreement for the construction of residential properties (except for services rendered by a developer with respect to the construction of objects for production needs)
- Various financial services provided by the licensed institution
- Certain imports, for example:
— Goods for commercial use that cost less than EUR200
— Goods for personal use that cost less than EUR200
— Goods imported as gratuitous aid according to the government list
— Medical products according to the government list
— Cultural property imported as a gift for Russian cultural institutions
— Periodic materials imported as a gift for Russian libraries
Reduced rate: 10%
- Basic foodstuffs
- Certain children’s goods
- Medical goods
- Pedigree cattle
Reduced rate: 16,67%
- Electronically supplied services
- Transfer of going concern
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on May 9, 2021.
