Russian Finance Ministry Proposes Phased Increase of VAT Thresholds for Foreign Goods

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The Russian Ministry of Finance has presented updated parameters for the gradual increase in VAT rates on imported goods purchased by individuals through marketplaces. The ministry has proposed shortening the transition period and raising the thresholds for VAT rates, according to Deputy Finance Minister Alexei Sazanov, as reported by TASS.

Under the new proposal, the changes are expected to come into effect in 2027. In the first year, the VAT rate would be set at 7%, rising to 14% in the second year, and reaching the standard rate of 22% in the third year. The final decision will be made by the government.

Initially, the Ministry of Finance had suggested increasing the VAT rate for imported goods by 5% in 2027, 10% in 2028, 15% in 2029, and 20% in 2030.