Russia Clarifies VAT Exemption for Industrial Products Containing Precious Metals

• Russia’s Ministry of Finance confirmed that sales of industrial products containing precious metals may qualify for VAT exemption under Article 149(3)(9) of the Russian Tax Code.
• The exemption applies only where the buyer is directly engaged in producing or refining precious metals from complex ores, concentrates, semi-finished products, scrap or waste.
• Sales to buyers that are not themselves engaged in qualifying production or refining activities do not benefit from the exemption. The clarification was issued in Ministry of Finance Letter No. 03-07-05/591483 of 7 August 2026.

Extended article

The Russian Ministry of Finance has clarified the conditions under which industrial products containing precious metals can be sold without VAT.

According to Ministry of Finance Letter No. 03-07-05/591483 of 7 August 2026, the sale of qualifying industrial products for precious-metal production and refining may fall within the exemption in Article 149(3)(9) of the Russian Tax Code.

The decisive factor is the status and activity of the buyer. The buyer must be an entity directly engaged in producing precious metals. The relevant production process includes extracting precious metals from:

• mined complex ores;
• concentrates;
• other semi-finished products containing precious metals;
• scrap; or
• waste.

The Ministry therefore distinguishes according to how the purchasing entity uses the products. The exemption applies where the buyer is directly involved in qualifying precious-metal production or refining. It does not apply to sales to other entities.

The clarification is narrower than a general product-based exemption. The presence of precious-metal content in a product is not, by itself, sufficient. A seller must also establish that the purchaser satisfies the required production or refining condition.

This should be distinguished from other Russian VAT rules concerning precious metals. Separate amendments effective in 2026 address zero-rating for certain supplies by precious-metal miners to authorised refining organisations and exemptions for specified banking transactions involving precious metals. [akm.ru], [vatupdate.com], [akm.ru]

Businesses should therefore identify the precise transaction, counterparty and legal provision rather than using one generic VAT code for all precious-metal-related supplies.

External links

• View Ministry of Finance Letter No. 03-07-05/591483
• Review Russia’s separate 2026 rules for supplies to authorised refiners [akm.ru]