Russia - VAT Rate Increase Proposed
In moves approved by the Cabinet on June 14th 2018 the Russian government proposed a draft law that proposes to increase the standard VAT rate from 18% to 20%.
If adopted, which is likely, this new rate will come into force on January 1st 2019. However, existing reduced rates on, for example, children’s goods, food and medical supplies will remain unchanged.
It is hoped by the government that the proposed increase will generate at least an extra 600 billion roubles (approx. EUR 8.23 billion) to government revenue annually. We will of course keep you updated with developments.
Should you require any international VAT assistance, please contact us.