- From January 1, 2026, new VAT rules apply for organizations and individual entrepreneurs on the simplified tax system (STS) in Russia.
- Taxpayers with 2025 income not exceeding 20 million rubles are automatically exempt from VAT, related declarations, and invoicing.
- If income exceeds 20 million rubles, taxpayers must pay VAT and can choose between special rates (5% or 7% without input VAT deduction, mandatory for at least 3 years) or general rates (20%, 10%, 0% with input VAT deduction).
- VAT payers must submit quarterly electronic declarations, pay tax in equal installments, issue invoices within five days of shipment, and indicate the VAT rate on receipts.
- Income from business activities, including property acquired at auctions and sold as part of core business, is fully subject to VAT.
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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