Russian MP Shkolkina: SMEs Can Contribute More to State Revenue with Adjusted Income Threshold and VAT

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Russian State Duma Deputy Nadya Shkolkina has spoken about the ongoing preparation of new arguments regarding the income threshold for small and medium-sized enterprises (SMEs), above which they would need to pay value-added tax (VAT). Shkolkina believes that even without this tax measure, small and medium businesses can contribute significantly to the state.

• The threshold of 20 million rubles is the annual income level at which small businesses on the simplified taxation system (STS) must switch to paying VAT.

“During the period of sanctions, when large enterprises were somewhat confused about the supply of components, parts, and other items, it was the SMEs that found quick logistics solutions. However, soon, unfortunately, it was decided that the budget should be somewhat improved at the expense of small businesses. I was against this; I spoke out at all levels, but the decision was made (to transition SMEs from STS to VAT) as a temporary measure. I am very glad that the President supported us, and we settled on the threshold of 20 million rubles. We are now preparing new arguments that SMEs can contribute more to the state in terms of taxes and other things than they do today with the threshold of 20 million rubles and VAT.” Shkolkina stated at a business breakfast currently taking place. The event is organized by BZ and the Tula regional branch of “Delovaya Rossiya” (Business Russia).