Russia’s VAT Rate Rises
As anticipated for 1st Jan 2019, Russia’s value-added tax (VAT) rate was officially increased to 20% after the law was signed by Vladimir Putin, Russian President.
The 2% increase is the first change to the VAT rate since 1st Jan 2004, when it came into force at 18%.
The law which was signed by the Russian Government back in August ‘Stipulates that the tax raise becomes effective on the first day of 2019 with the exemption of certain products with preferential tax rates, such as foods, children’s items and medical goods.’ Reports AzerNews.
The tax hike is anticipated to heighten government revenues by 620 billion rubles (Roughly 9.9 million U.S. dollars) a year, according to a statement by the Russian State Duma (Lower house of the Federal Assembly of Russia).
However, experts believe that the VAT increase is expected to hinder Russia’s economic growth and drive inflation higher during 2019.
Junior Communications Officer at Innovate Tax
Since joining Innovate Tax, initially as a business apprentice, Emily has developed her interests in communications and has proven herself as a talented digital marketer. Emily supports the marketing team’s efforts from both digital and PR perspective.
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