In Russia, the turnover threshold for VAT payment by small and medium-sized businesses will be gradually lowered.

In Russia, the turnover threshold for VAT payment by small and medium-sized businesses will be gradually lowered.

      The Russian government approved a gradual reduction of the annual revenue threshold at which small and medium-sized businesses are required to pay value-added tax (VAT). The changes will take effect in 2026 and will be introduced in stages. Under the new scheme, the threshold will be 20 million rubles in 2026, 15 million rubles in 2027 and 10 million rubles in 2028. Thus, the transition process will be spread over three years, writes ria.ru. A moratorium is also envisaged on holding liable those taxpayers who, for the first time, commit a violation when paying VAT after the new rules come into force. Earlier we wrote that the authorities had decided to lower the threshold immediately to 10 million rubles from 2026. However, they later decided to implement the changes in stages to avoid an increase in administrative burden and to give businesses time to prepare.

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In Russia, the turnover threshold for VAT payment by small and medium-sized businesses will be gradually lowered.

The transition to the new values will be phased in over three years.