- 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"
- Russian Tax Service Clarifies VAT Rules for Mining Infrastructure and Computing Power Services
- Russia to Impose Gradual VAT on Foreign Online Marketplace Goods Starting 2027
- VAT Codes for 10% Rate on Food Products Updated Effective July 2026 in Russia
- Russia Proposes 2026 Tax Relief and Flexible Rules to Support SME Transition
- Russian Finance Ministry Explains New VAT Rate Impact on Lease Accounting Under IFRS
