State Duma Adopts Bill in Second Reading on Gradual Reduction of Revenue Threshold for Small Businesses to Pay VAT

© Государственная Дума

The State Duma has adopted in the second reading a bill on the gradual reduction of the annual revenue threshold. Under this threshold, entrepreneurs who use the simplified or patent taxation system are required to pay VAT.

However, as noted in TASS, the conditions for the transition to VAT payment for small businesses turned out to be softer than in the first reading. Initially, it was planned to reduce the annual revenue threshold for entrepreneurs on the simplified or patent taxation system from 2026 from 60 million rubles to 10 million rubles.

In the second reading, however, the State Duma decided to reduce the threshold gradually: from 2026 - to 20 million rubles, from 2027 - to 15 million rubles, and from 2028 - to 10 million rubles.

The bill will be considered in the third reading on November 20.