Mishustin Announces Phased Reduction of VAT Payment Threshold

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The Russian government will ease the conditions for applying VAT by small and medium-sized businesses. This was announced by Prime Minister Mikhail Mishustin.

He noted that the income threshold, at which businesses are required to pay VAT, will be gradually reduced. From 2026, it will be set at 20 million rubles instead of the previously announced 10 million rubles. From 2027, it will be 15 million rubles, and from 2028, it will be 10 million rubles.

Mishustin also added that a moratorium on holding small and medium-sized enterprises liable for first-time violations of VAT regulations is planned.