Russia increased its VAT rate from 20% to 22% on 1 January 2026, expanding VAT registration to more small businesses. The Finance Ministry expects the hike to bring an extra 3.2 trillion rubles in revenue, while businesses have already raised prices to offset the tax change. The move aims to close the fiscal gap caused by war spending and falling oil revenues.
From 1 Jan 2026, Russia increased VAT from 20% to 22%.
The change expands the number of small businesses required to pay VAT, though specific thresholds are not detailed.
The Finance Ministry expects an additional 3.2 trillion rubles ($40.96B) in revenue.
It was 11.5 trillion rubles, accounting for more than 38% of total federal revenue.
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The Invoicing Hub · about 4 hours ago
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