FNS Russia Guidelines on VAT for USN Taxpayers: Key Points and Recommendations for Businesses

• From January 1, 2025, organizations and individual entrepreneurs on the simplified tax system (УСН) are recognized as VAT payers, except those whose income in 2024 does not exceed 60 million rubles
• The exemption from VAT payment is automatic for those not exceeding the income threshold, no need to apply to the tax office
• The methodological recommendations cover various scenarios for taxpayers, including when income exceeds the threshold during the year
• VAT is calculated based on the value of goods, works, services sold, with different rates available for businesses based on their annual income
• Businesses can choose between general VAT rates (20%, 10%, 0%) or special rates (5% or 7%) based on their income and types of transactions
• In some cases, paying VAT at the general rate of 20% may be more beneficial than the special rates of 5% or 7% due to the ability to deduct “input” VAT

Source: nalog.gov.ru

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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