Compliance
Compliance Checklist for Russian SMEs Under the 2026 Tax Reform
Russia’s sweeping reforms for SMEs in 2026 introduce new VAT, contributory, and reporting thresholds. SMEs must act now to ensure compliance under the new system.
By NomadicTax Research Team • 5-8 min read • August 11, 2026
## What’s Changed for SMEs in Russia in 2026
Several major reforms affecting small and medium enterprises (SMEs) have come into force in 2026:
- The **VAT exemption threshold under the Simplified Tax System (USN)** dropped from 60 million rubles to **20 million rubles** in 2026; further reductions to 15 million in 2027 and 10 million from 2028 onward. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- New VAT rates and adjusted “special” VAT regimes for those on USN: 5%, 7% depending on income bands; and the baseline 22% where thresholds exceed limits. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- Companies on USN exceeding 20 million ruble revenues in 2025 must register as VAT taxpayers from start of 2026. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- For businesses in food service (public catering), there’s an exemption from VAT pushed out to **December 31, 2026**, if more than 70% of income from main activity, with adjustment of cash registers. ([nalog.gov.ru](https://www.nalog.gov.ru/rn77/news/activities_fts/16620580/?utm_source=openai))
## Compliance Steps to Take Now
1. **Assess your revenue for 2025 and projections for 2026**
- If total revenue in 2025 exceeded 20 million rubles, you must register for VAT by Jan 1, 2026.
- If projection shows threshold breach in 2026, plan to transition.
2. **Review USN object (“revenues” vs “revenues minus expenses”)**
- Choose the object that gives tax-saving benefits; may affect deductibility and compliance responsibilities.
3. **Adjust accounting systems**
- Implement or adapt software to accommodate new VAT reporting, invoice issuance, and electronic control for cash registers.
4. **Ensure payroll and non-cash benefits compliance**
- One-time corporate payments at birth or adoption are exempt up to 1 million rubles per child. ([nalog.gov.ru](https://www.nalog.gov.ru/rn38/news/seminar/16616087/?utm_source=openai))
- Benefits like reimbursement for international travel health insurance during business trips now tax-exempt and removed from base for social contributions. ([nalog.gov.ru](https://www.nalog.gov.ru/rn38/news/seminar/16616087/?utm_source=openai))
5. **Stay aware of document form changes**
- New simplified tax declaration form (ЕУНД) from April 2026. Old form is still accepted until official cancellation. ([nalog.gov.ru](https://www.nalog.gov.ru/rn25/news/activities_fts/16615484/?utm_source=openai))
- Certain notification deadlines (e.g., for USN, object changes) fixed (June 1, 2026 in some cases). ([nalog.gov.ru](https://www.nalog.gov.ru/rn92/news/activities_fts/16623669/?utm_source=openai))
## Examples
- A bakery on USN in Moscow with 2025 revenue of **25 million rubles** must register for VAT from 2026. If it keeps carrying on without registering, it risks penalties.
- A restaurant with 75% of revenues from food shortages of main activity can retain the VAT exemption until end 2026—if meets income share and updates its cash register systems.
- If your business last year earned **10 million rubles** excluding interest on bank deposits, and that excluded income kept you below 20 million, you may still qualify for continued VAT exemption. Interest income gets special treatment. ([nalog.gov.ru](https://www.nalog.gov.ru/rn77/news/activities_fts/16620580/?utm_source=openai))
## Penalties and Risks
- Untimely VAT registration results in fines and past unpaid VAT liabilities.
- Misuse of simplified USN objects or errors in reporting “non-cash benefits” could trigger reassessments.
- Failure to adjust document forms may delay processing or cause rejections in declarations.
## Pro Tips for Smooth Transition
- Start tracking monthly revenues now so you know when thresholds are nearing.
- Consult with a local tax advisor familiar with regions—regional variations (especially in eligible reduced VAT or payroll benefits) matter.
- Maintain clear documentation: income sources, invoices, payroll records.
- Budget for increased tax and contributor costs if USN regime transitions into VAT or general regime.