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Russia studies 22% VAT

  • Mar 24, 2017 | Richard Asquith

Russia studies 22% VAT

Russia is considering raising VAT from 18% to 22%.

The rise in indirect tax would help fund a cut in employer social security levies from 30% to 22% to help reduce black economy employment.  The change would be implemented in 2019.  However, it appears that the VAT rise would fail to cover the hole left in the deficit by the employer tax cut.  Furthermore, inflation is already running at 4.6% which would be exasperated by a VAT rise.

The average EU VAT rate is almost 22%.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.