VATLive > Blog > Russia > Russia VAT cut to 15% July 2020

Russia VAT cut to 15% July 2020

  • Feb 25, 2020 | Richard Asquith

A proposal has been submitted to the Russian parliament to cut the standard VAT rate from 20% to 15% on 1 July 2020. The reduced VAT rate will also be cut from 16.67% to 13.04%. This applies to company vehicles and foreign providers of electronic services.

The rate was last changed from 18% to 20% on 1 January 2019. At the time, it was forecast that this would deliver an increase in revenues of 600 billion roubles for national capital infrastructure spend. However, the additional revenues have fallen short. The VAT bill estimates that cutting the VAT rate by 5 percentage points would generate a cut in tax revenues of 1 trillion roubles, but would be countered by a rise in GDP of 5%.

The VAT revenues are split by federal and state governments. 

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Researching Russian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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.
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