- Russian Ministry of Finance proposes raising standard VAT rate from 20% to 22%, while keeping the 10% reduced rate for essential goods.
- VAT registration threshold lowered from 60 million RUB to 10 million RUB, bringing more small and medium enterprises into the VAT system.
- Consumers may face higher prices due to the VAT increase, but essential goods remain protected.
- Tax authorities will need to oversee a broader tax base and ensure higher compliance.
- Proposals are part of the 2026 budget package and require parliamentary approval; changes could take effect from 1 January 2026.
Source: fintua.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.
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