- President Putin signed a law raising Russia’s VAT from 20% to 22% starting next year.
- The VAT threshold for businesses will drop from 60 million to 10 million rubles, bringing more small businesses into the tax system.
- Businesses plan to pass the tax increase onto consumers, likely causing a modest rise in inflation.
- Essential goods like select foods, medicines, and children’s products will keep a reduced 10% VAT, but some milk-based products will now be taxed at 22%.
- The tax hike aims to address budget shortfalls from increased military spending and declining oil and gas revenues.
Source: themoscowtimes.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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