RUSSIA’S STATE DUMA APPROVES VAT RATE AT 20%

Russia’s State Duma approves VAT rate at 20%

MOSCOW, July 24 (RAPSI) – The State Duma, Russia’s Parliament’s lower house, has approved in the third and final reading a bill envisaging an increase in the rate of the value added tax (VAT) proposed by the government.

The bill amends the Russian Tax Code to the effect that the VAT rate is raised from 18 per cent to 20 per cent and sets forth the rates of insurance contributions pertaining to compulsory retirement insurance.

According to the document, a 10 per cent discounted VAT rate is to be retained as concerns socially important goods like foodstuffs, with the exception of delicacies; products for children; printed periodicals; books related to education, science and culture; and medicines.

It is also envisaged that a zero VAT rate with respect to air-passenger transportation to and from certain geographical destinations to be retained until 2025.

It is expected that the raise will annually bring to the federal budget additional 620 billion rubles (about $9.8 billion) since 2019.

(Source: http://www.rapsinews.com/legislation_news/20180724/285362355.html)

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