Russia Raises Standard VAT to 22% and Lowers Thresholds for Simplified and Patent Tax Regimes

• The standard VAT rate will increase from 20% to 22% starting 2026; the reduced 10% rate remains unchanged.
• New, lower annual income thresholds for VAT liability under Simplified (УСН) and Patent (ПСН) regimes: 20 million RUB (2026), 15 million RUB (2027), 10 million RUB (2028+).
• Exceeding these thresholds triggers mandatory VAT registration from the following year.
• Newly VAT-liable businesses can opt for the standard 22% VAT rate with input VAT deductions for four quarters.
• No penalties for late filing of the first VAT return in 2026 for new VAT payers; these changes are part of a broader tax reform package.

Source: fintua.com

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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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