Summary
- Opposition deputies have submitted Draft Law No. 1331250-8 proposing to reduce Russia’s standard VAT rate from 22% to 20% from 1 January 2027. [vatcalc.com]
- The proposal would leave the existing reduced rates of 0% and 10% unchanged. Its sponsors argue that the 22% rate increases costs across manufacturing, supply chains, trade and services. [vatcalc.com]
- The bill would also raise the simplified-regime revenue threshold triggering VAT liability from RUB 20 million to RUB 60 million. It is not currently a government proposal, so adoption remains uncertain. [vatcalc.com]
Extended article
Russian opposition legislators have proposed reversing the increase in the standard VAT rate that took effect at the beginning of 2026.
Draft Law No. 1331250-8, submitted to the State Duma on 2 September 2026, would reduce the standard rate from 22% to 20% from 1 January 2027. The existing 0% and 10% rates would remain unchanged. [vatcalc.com]
The bill’s sponsors argue that the higher rate increases the tax burden across manufacturing, supply chains, trade and services, with part of the cost ultimately reflected in consumer prices.
The proposal would also increase the revenue threshold at which businesses using the simplified tax system become liable for VAT. The threshold would rise from RUB 20 million to RUB 60 million. [vatcalc.com]
The proposal originates from opposition lawmakers rather than the Russian government or Ministry of Finance. Businesses should therefore continue applying the current rules unless and until legislation is enacted.
External links
Latest Posts in "Russia"
- Russia Plans VAT Relief for Anti-Drone Defense Purchases
- Russia Raises Import Duties on Selected Machinery and Equipment from 2027
- New Procedure for Confirming 10% VAT on Children’s Goods
- Russian Government backs VAT exemption bill for film-industry entrepreneurs
- Russia Imposes 35% Duty on Supplement Imports from Unfriendly Countries
