VAT rate in Russia will change on January 1, 2026.

The value-added tax rate in Russia will increase from 20% to 22% on January 1, 2026. Russian President Vladimir Putin signed the corresponding law.

Furthermore, the document lowers the income threshold for taxpayers using the simplified tax system, after which such taxpayers will be considered VAT payers.

The federal law also provides transport tax benefits to combat veterans, Heroes of the Soviet Union, Heroes of the Russian Federation, recipients of the Order of Glory of three degrees, participants in special military operations, and their family members.

In addition, the federal law provides tax breaks for individuals on land tax and property tax for taxable properties located in territories where a state of emergency, a counter-terrorism operation, or a state of war has been declared under Russian law, and where residents have been temporarily resettled (evacuated).

Furthermore, the law establishes a technological fee payable on electronic components (electronic modules) and industrial products containing electronic components (electronic modules) imported into the country or manufactured in the Russian Federation, on the continental shelf of the Russian Federation, or in the exclusive economic zone of the Russian Federation.

Author: Eduard Kuskarbekov