VATLive > Blog > VAT > Russia studies 22% VAT - Avalara

Russia studies 22% VAT

  • VAT
  • 25 March 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%.

Latest Russian news
Russia VAT rise to 20% Jan 2019
June 15, 2018

The Russian government has approved a VAT rise from 18% to 20% on 1 January 2019. It must next be ratified by the Russian Parliament...
Russia lowers VAT low value consignment relief
April 22, 2018

The Russian Ministry of Finance has proposed lowering the VAT-free threshold for goods imported into the country – ‘low value consignment relief’. From 1 July...
Russia VAT proposals following elections
March 28, 2018

Following the re-election of Russian President Putin, a number of changes to the VAT regime are being proposed to help meet election healthcare and infrastructure...

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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.