Russia increased its VAT rate from 20% to 22% on 1 January 2026, expanding VAT registration to more small businesses. The Finance Ministry expects the hike to bring an extra 3.2 trillion rubles in revenue, while businesses have already raised prices to offset the tax change. The move aims to close the fiscal gap caused by war spending and falling oil revenues.
From 1 Jan 2026, Russia increased VAT from 20% to 22%.
The change expands the number of small businesses required to pay VAT, though specific thresholds are not detailed.
The Finance Ministry expects an additional 3.2 trillion rubles ($40.96B) in revenue.
It was 11.5 trillion rubles, accounting for more than 38% of total federal revenue.
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Bloomberg Tax · about 1 month ago
The Russian Federal Tax Service announced that the filing deadline for Q1 2026 VAT returns is April 27, 2026. Taxpayers must use a new form that reflects a VAT rate increase to 22% from 20%, along with other changes.
EADaily · about 1 month ago
Russia’s Ministry of Industry and Trade has proposed a flat 22% VAT on all foreign goods, including purchases via online marketplaces, effective 1 January 2027. The proposal contrasts with a Ministry of Finance draft that would raise the rate gradually from 5% in 2027 to 20% in 2030. The announcement was made by Minister Anton Alikhanov at the Duma Committee on Industrial Policy on 11 February 2026.
VatCalc · about 2 hours ago
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VATabout · about 21 hours ago
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Bloomberg Tax · 2 days ago
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VatCalc · 2 days ago
The European Court of Justice issued three rulings on 12 March 2026 that clarified VAT deduction rights across the EU. The decisions confirmed that Spain can maintain its entertainment expense restrictions under Article 176, that late invoices do not preclude deductions if claimed within the limitation period, and that technical failures in electronic refund transmission cannot cancel refund claims. These rulings reinforce that VAT rights cannot be undermined by excessive formalism or administrative shortcomings.
