🇷🇺 Tax28 Nov 2025
Russia raises VAT to 22% from 2026
Russia's Federal Law no. 425-FZ of 28 November 2025 raises the standard VAT rate from 20% to 22% from 1 January 2026. The 10% reduced rate for food, medicines, books and children's goods stays. The Federal Tax Service says supplies made from 1 January 2026 are taxed at 22% whenever the contract was signed.
Federal Law no. 425-FZ of 28 November 2025 amends parts one and two of the Tax Code.
What changed
- The standard VAT rate rises from 20% to 22% from 1 January 2026.
- The calculated rate moves from 20/120 to 22/122.
- The 10% reduced rate for foodstuffs, medicines, books and certain children's goods continues.
- There is no transitional rule for continuing contracts: goods, work, services and property rights transferred from 1 January 2026 are taxed at 22%.
- The same law cuts the income threshold for small businesses using the simplified tax system to stay outside VAT, in stages.
Who is affected
Russian companies and their finance teams, and foreign suppliers of electronic services to Russian customers.