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Increase of VAT to 20% from 2019

Increase of VAT to 20% from 2019

On 24 July 2018, State Duma has passed a bill to increase value-added tax (VAT) rate up to 20% from the current 18%.

The law draft states the following:

  • starting from 2019 the general VAT rate will be raised to 20%;
  • all current preferential rates will be kept. For example,  the rate of VAT for socially important goods will remain at 10%;
  • rates for pension insurance charges will not go up to 26% from 2021, as stated earlier, but will be fixed at the current rate of 22%.

Currently Russian lawmakers are considering to abolish tax on movable property in order to reduce the tax burden on  businesses.