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Russia Proposes Zero VAT on Lightweight Drones to Boost Domestic Production Until 2027

  • Russia’s parliament proposed a draft law to boost domestic drone production.
  • The proposal includes a zero VAT rate for civil UAVs made in the EAEU weighing 0.15 to 30 kg.
  • The zero VAT rate also covers sales of engines, spare parts, and components for production and repair.
  • The import of these spare parts and components will also have a zero VAT rate.
  • The draft was submitted to the State Duma on 8 July 2025.
  • Currently, the zero VAT rate applies only to UAVs over 30 kg.
  • To qualify, taxpayers must provide a sales contract, a register extract, and transfer documents.
  • The zero VAT rate is expected to last until 31 December 2027, with a possible extension.
  • If adopted, the law takes effect one month after publication, but not before the next VAT period starts.

Source: regfollower.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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