The increase of the VAT rate to 20% has been finally approved
Legal Digest \ 28.08.2018The basic rate of value added tax will rise from 18% to 20% starting from 1 January 2019.
The preferential 10% VAT rate on socially important goods will be preserved. Such goods include goods for children, various food and pharmaceutical products, printed materials and books.
VAT was first introduced in Russia in 1992 and amounted to 28%. However, the tax was decreased to 20% as early as 1 January 1993. In addition to VAT, sales tax was levied in Russian regions between 1998 and 2004. VAT of 18%, as we are accustomed to, has been in effect only since 2004.
For taxation advice please contact Acsour’s managers.