How to Verify the Right to “Catering” VAT Exemption When Moving to Another Region

• From 2024, food service businesses in Russia will need to meet additional salary requirements in order to qualify for VAT exemptions.
• Individual entrepreneurs (IE) who have moved to a different region need to determine if their business meets the salary requirement.
• To qualify for VAT exemptions, organizations and IEs in the food service industry must have average monthly payments and other rewards to individuals that are not lower than the average monthly salary in each region.
• The Ministry of Finance has provided guidance for IEs who have changed their place of residence and registration to a different region.
• If an IE changes their registration address between regions, they need to compare the average monthly payments made to individuals in each region for the previous calendar year.
• The comparison should be made for each period based on the number of full calendar months in each place of residence.
• An example is given where an IE changed their place of residence in June 2023 and needs to compare payments made from January to June with the average monthly salary in the first region, and payments made from July to December with the average monthly salary in the second region.

Source: glavkniga.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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