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VAT to be increased in Russia
VAT to be increased in Russia
The Russian Ministry of Finance has proposed raising the value-added tax (VAT) to 22% starting from January 1, 2026.
According to the ministry’s press release presented to the government along with the budget package, the additional revenue from the VAT increase will primarily be allocated to finance defense and security.
The reduced VAT rate of 10% will remain in effect for all socially important goods, including food, medicines and medical products, children’s goods, and others.
If approved, the amendments to the Russian Tax Code will take effect on January 1, 2026.
The Russian Ministry of Finance has proposed raising the value-added tax (VAT) to 22% starting from January 1, 2026.
According to the ministry’s press release presented to the government along with the budget package, the additional revenue from the VAT increase will primarily be allocated to finance defense and security.
The reduced VAT rate of 10% will remain in effect for all socially important goods, including food, medicines and medical products, children’s goods, and others.
If approved, the amendments to the Russian Tax Code will take effect on January 1, 2026.