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Russia VAT rise to 20% Jan 2019

  • VAT
  • 15 June 2018 | Richard Asquith

Russia VAT rise to 20% Jan 2019

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 – which is likely to be a mere formality.

The hike is less than the Russian 22% VAT threatened earlier. There will be no change to the reduced VAT rate of 10% on basic foodstuffs, medicines, child’s clothing and newspapers & journals.

In addition, the pension age will rise for men and women. The VAT and pensions measures are being introduced to help meet the state deficit despite a recovery in oil prices from $40 to $70 per barrel.

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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 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.