- Russia will gradually lower VAT exemption thresholds for small businesses from 60 million roubles to 20 million in 2026, 15 million in 2027, and 10 million in 2028, after backlash from business owners.
- The phased approach replaces an initial plan to lower the threshold to 10 million roubles in one step, which business lobbies said would force many small businesses to close.
- A moratorium on penalties for first-time tax violations will be introduced for businesses newly subject to VAT in 2026.
- The government also plans to raise the general VAT rate from 20% to 22% and introduce a “technology tax” on industrial electronics imports.
- These measures aim to boost state finances for military spending and are expected to raise 200 billion roubles from small businesses, which make up over 20% of Russia’s GDP and employ 40% of the workforce.
Source: marketscreener.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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