- The Russian Finance Ministry is open to discussing a reduced VAT rate for the catering industry.
- A proposal suggests lowering the VAT rate to 3% for catering businesses.
- Currently, these businesses pay a standard 20% VAT rate but can claim deductions, effectively paying 3% to 4%.
- The proposal aims to simplify administrative processes and reduce tax disputes.
- President Putin supports targeted industry adjustments and finds the proposal reasonable.
- An agreement was made to raise the revenue threshold for VAT exemption from 2 billion to 3 billion rubles.
- The Finance Ministry is considering a reduced VAT rate of around 3% to 4% without deductions.
- The Ministry is working with catering industry representatives to develop proposals.
- The Finance Ministry opposes changing the general approach to VAT distribution, as it is a federal tax.
Source: interfax.com
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.
