Putin Freezes VAT Threshold for Simplified Tax System at 20 Million Rubles Until 2029

© Кремль

Russian President Vladimir Putin has signed a law that maintains the annual revenue threshold for small businesses at 20 million rubles when transitioning from the simplified tax system to paying value-added tax (VAT).

Under the new legislation, the current limit will not be adjusted for inflation and will remain unchanged until 2029. This means that entrepreneurs and companies using the simplified tax system (USN) will continue to refer to the established threshold when determining their obligation to pay VAT.

The adopted amendments are aimed at ensuring tax stability for small businesses and will be in effect for the next several years.