Proposal to Reduce VAT on Socially Significant Goods to 5% by 2026: Details and Implications

• Deputies of the State Duma propose to revise the preferential VAT rate for food products, children’s products, and medicines
• The proposed reduction is from 10% to 5%
• If the inflation rate for a specific group of socially significant goods exceeds the overall inflation rate, the tax rate for that group will be reduced to 0% in the next tax period
• The changes, if accepted, will come into effect on January 1, 2026
• Currently, food products, children’s products, educational books, and medical goods are taxed at a rate of 10%
• The fixed VAT rate does not consider inflation dynamics in specific groups of socially significant goods, which can put additional pressure on consumers
• The proposed floating rate will adjust the tax burden based on inflation dynamics.

Source: garant.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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