News

On August 03 , 2018 , the Federal Law on Amendments to Certain Legislative Acts of the Russian Federation on Taxes and Fees was adopted

These changes primarily provide for an increase in the value added tax (VAT) rate from 18% to 20% from January 01, 2019.

As the authors of this bill indicate, the VAT increase is aimed at providing the budget with additional financial resources. Such a measure will ensure the fulfillment of the goals in the field of demographic policy, health, education and infrastructure development set out in the Decree of the President of the Russian Federation "On National goals and strategic objectives of the development of the Russian Federation for the period up to 2024" dated May 07, 2018.

Meanwhile, a reduced VAT rate of 10% was retained for social goods. This includes medicines and medical products, children's goods, food products (with the exception of delicacies), as well as periodicals and book products related to education, science and culture.