Russia increases VAT rates

The main updates in the new tax code

• The standard VAT rate will increase from 18 to 20 %.
• The reduced rate of 10 % for certain food products, medical appliances, pharmaceuticals, educational, cultural and scientific materials and children’s products will be spared from the VAT tax hike.
• However, enterprise sales and foreign service providers of e-services will now have a VAT rate of 16.67 % raised from the previous 15.25 %.

What taxpayers should ask their local tax professional

 

1. F…