Analyzing the Feasibility of Eliminating VAT for Certain Industries in Russia
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Moscow, May 29 – Russian Prime Minister Mikhail Mishustin assigned the Ministry of Finance, the Ministry of Economic Development and the Federal Tax Service to consider the possibility of canceling the value-added tax for a number of service industries, similar to the approved mechanism for catering services.
In July 2021, Russian President Vladimir Putin signed a law exempting public catering establishments from value-added tax in 2022, whose annual revenues do not exceed two billion rubles annually. This measure applies to restaurants, cafes, bars, fast food establishments, buffets, cafeterias, canteens, snack bars, cooking departments of these facilities and other similar catering facilities, as well as catering.
A proposal to expand this mechanism was made by the President of the Federation of Restaurants and Hotels of Russia Igor Bukharov during a meeting of the State Committee for the Development of Small and Medium Enterprises.
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“The problem of barriers associated with a sharp increase in the tax burden when exceeding the threshold values \u200b\u200bof tax systems is a typical problem not only for public catering enterprises, but also for colleagues from related industries – the service sector and fitness. In this regard, we propose to consider the possibility of extending such The tax system and other industries, or the introduction of a special tax system for companies that have lost the right to the simplified tax system.
“As for expanding to other types of economic activity, in particular, you propose to expand it to hotels and fitness clubs, I think it is possible, but everything needs to be thought out very carefully. I would like to ask the Ministry of Finance, the Ministry of Economic Development and the Federal Tax Service to consider In such companies, ”Mishustin answered.
And the head of the government added: “Everything here is reasonable if the colleagues who deal with him have related problems. As you remember, the main problems were obtaining a discount for purchases, and there were a lot of nuances related to the activities of the cafe.”
