- Russia will gradually lower the VAT payment threshold for SMEs from ₽20 million to ₽10 million over three years (2026-2028).
- SMEs with turnovers below these thresholds will not be required to pay the 22% VAT.
- The changes aim to provide tax breaks and encourage the growth of the SME sector, which currently contributes 20-25% to Russia’s GDP.
- A moratorium on prosecution for first-time VAT payment violations may be introduced.
- New VAT payers will have a one-time option to refuse the reduced VAT rate in their first year to minimize risks.
Source: russiaspivottoasia.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.
Latest Posts in "Russia"
- Webinar: Key VAT Law Changes Explained by Russian Federal Tax Service Expert, December 16
- Electricity Tariffs to Rise by 1.7% from January 2026 Due to VAT Increase in Russia
- Kremlin: Duration of 22% VAT Rate Still Uncertain, 10% Preferential Rate Remains
- Russia Grants VAT Exemption for Precious Metal Banking Transactions Starting January 2026
- Russia to Implement 2026 VAT Rules and Delivery Confirmation for Marketplace Sales
