Russia Eases VAT Threshold Reductions for Small Businesses

Russian Prime Minister Mikhail Mishustin announced plans to soften the reduction of revenue thresholds for VAT payments by small and medium-sized enterprises between 2026 and 2028, with gradual decreases from 20 million roubles in 2026 to 10 million roubles by 2028, altering an earlier stricter proposal.

Russian Prime Minister Mikhail Mishustin on Thursday revealed a softened approach to lowering revenue thresholds for value-added tax (VAT) payments by small and medium-sized enterprises. The revised plan proposes gradual reductions over a three-year span.

Initially proposed to drop from 60 million roubles to 10 million by 2026, the government's new plan recommends lowering the threshold more incrementally. Starting at 20 million roubles in 2026, it will decrease to 15 million in 2027, and finally reach 10 million by 2028.

This adjustment reflects the government's response to feedback from business communities who expressed concerns over the substantial tax compliance shift.

(With inputs from agencies.)