31 July 2018 Russia to increase standard VAT rate from 18% to 20% as of January 1, 2019 The Russian State Duma passed, in the third reading, Draft Law No. 489169-7 "Concerning the Introduction of Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation," on July 24, which provides, among other things, an increase in the standard rate of Value Added Tax (VAT) to 20%. The tax-inclusive rate, which applies in the case of a sale of an entire enterprise as an asset complex as well as when VAT is calculated and paid by foreign suppliers of electronic services, would rise from 15.25% to 16.67%, accordingly. The reduced rate of 10% for food, children's goods and other certain goods would remain unchanged. Document ID: 2018-1534 |
