Tax Reform 2025: VAT recommendations for taxpayers applying a simplified tax system

On October 17, the Federal Tax Service published Methodological Recommendations on VAT for taxpayers applying the simplified taxation system. Acsour experts reviewed the set of clarifications and talked about the key features of the document.

The tax reform has radically changed the country’s tax system, in particular, it affected taxpayers applying the simplified tax system: for example, from January 1, 2025, organizations and individual entrepreneurs who apply the simplified tax regime are recognized as VAT payers.

The innovation raised a number of questions, the answers to which were received from the legislator in a fragmented form, which made it difficult to understand the algorithm of actions of payers applying the simplified taxation system.

On October 17, the Federal Tax Service of Russia prepared a systematic list of recommendations from 26 sections that clarify:

• how is VAT exemption for taxpayers applying the simplified taxation system with income for the last year less than 60 million rubles;
• how is VAT paid if their income exceeded 60 million rubles and under what conditions is it possible to return the exemption;
• what VAT benefits do they have;
• how can I choose the VAT rate?

Acsour experts note that these recommendations are a key tool that will both help inform taxpayers applying the simplified taxation system about the necessary steps to comply with the law, and prevent subsequent issues.

The tax reform carried out has become the largest change in the country’s Tax Code over the past 25 years: a large number of innovations have provided a wide range of opportunities for businesses and citizens, however, a lack of methodological recommendations and comments from the legislator can lead to incorrect actions. Acsour specialists have extensive experience in the field of tax law and will be glad to help you resolve any issues in accordance with the law. If you have any questions about paying VAT when applying the simplified taxation system, get expert advice and prevent tax violations.