- From January 1, 2026, most companies and individual entrepreneurs on the simplified tax system (STS) will automatically become VAT payers, unless their 2025 income is below 20 million rubles.
- The income threshold for VAT exemption will decrease to 15 million rubles in 2027 and 10 million rubles from 2028.
- Businesses exceeding the threshold can choose between general VAT rates (0%, 10%, 22%) with input VAT deduction rights, or special reduced rates (5% or 7%) without deduction rights, depending on their client base and expense structure.
- Special VAT rates must be applied for at least 12 consecutive quarters, except for first-time VAT payers in 2026, who can opt out within the first four quarters.
- The income limit for using the STS in 2026 is 490.5 million rubles, and the limit for the residual value of fixed assets is 218 million rubles.
Source: nalog.gov.ru
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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