Bellerage

Increase of the standard VAT rate

Increase of the standard VAT rate

The Russian standard VAT rate will be increased from 18% to 20% as of 1 January 2019.

Thus, the taxpayers should pay great attention to the transactions on supply of goods (works, services) for which an advance payment was received before 1 January 2019.

Furthermore, if a continuing contract covers both 2018 and 2019, the parties should review the provisions of the contract, which describe the VAT calculation mechanism and agree on amendments with the counterparty if needed.