End of the "simplified tax system": authorities may lower the threshold for paying VAT sixfold.

End of the "simplified tax system": authorities may lower the threshold for paying VAT sixfold.

      The Russian Ministry of Finance has submitted to the government a package of bills proposing to lower the revenue threshold for entrepreneurs using the simplified tax system at which they must start paying VAT. Currently the obligation to pay this tax arises when revenue exceeds 60 million rubles. The Finance Ministry proposes to reduce this threshold to 10 million rubles.

      According to the ministry's calculations, the move should reduce the use of business-splitting schemes and create conditions for more transparent competition. At the same time, growing companies will be able to gradually transition to the general tax regime, Interfax reports.

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End of the "simplified tax system": authorities may lower the threshold for paying VAT sixfold.

The changes may take effect on January 1, 2026.