Tax Planning
How Russia’s 2026 Tax Reform Impacts Small Businesses on УСН
Starting in 2026, small businesses in Russia operating under Упрощённая система налогообложения (УСН) face several significant changes — here’s what entrepreneurs need to know to plan ahead.
By NomadicTax Research Team • 5-8 min read • August 25, 2026
## What’s Changing for УСН in Russia in 2026
The law signed on **28 November 2025 (Federal Law № 425-ФЗ)** introduces several revisions that will affect businesses using the simplified taxation system (УСН). Key changes include:
- **Income thresholds** for УСН businesses exempt from full VAT (НДС) are being reduced drastically—dropping from **60 million RUB to 20 million RUB starting 1 January 2026**, then further to 15 million in 2027 and 10 million in 2028. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- Businesses newly choosing УСН in 2026 that opt into reduced VAT rates (5% or 7%) have the option during their first four quarters to revert to the standard 22% rate (with input VAT credits), even if the original reduced-VAT term wasn’t fully expired. ([nalog.gov.ru](https://www.nalog.gov.ru/html/sites/www.rn76.nalog.ru/2025/otd_izm_zakonodat.pdf?utm_source=openai))
- Requirements around property and residual fixed assets cost limits for eligibility under УСН are being updated—including revenue ceilings, number of employees, and the residual value of fixed assets. For instance, the maximum revenue threshold in 2026 is set at **490.5 million RUB**, with fixed assets’ residual value capped at **218 million RUB**. ([nalog.gov.ru](https://www.nalog.gov.ru/html/sites/www.rn59.nalog.ru/Zakoni/202602izmZ.pdf?utm_source=openai))
## Practical Planning Tips for Businesses
To adapt smoothly, businesses under УСН should consider the following best practices:
- **Review your revenue projections now**: If you're approaching or expect to exceed 20 million RUB, you’ll need to plan for VAT liability sooner than under the old rules. Early forecasting helps avoid unexpected tax burdens.
- **Evaluate whether to elect reduced VAT rates immediately**: For new УСН taxpayers in 2026, the reduced rates of 5% or 7% may provide near-term relief, but there’s a built-in option to switch back to full VAT (22%) if more favorable. Choose based on your cost structure and ability to claim input VAT.
- **Keep a close eye on fixed assets and staffing levels**: Since eligibility hinges partly on fixed assets’ residual value and number of employees, sudden purchases or expansions might unintentionally push you out of УСН.
- **Adjust accounting and compliance processes early**: With the lower thresholds and the possibility of moving between VAT regimes, financial reporting and tax filings suddenly become more complex—make sure your accounting system can handle this, and your team knows the deadlines.
## Example Scenario
Consider “ИП Иванов,” a sole proprietor in Moscow with the following metrics for 2025:
| Metric | Value |
|---|---|
| Revenue in 2025 | 18 million RUB |
| Residual cost of fixed assets | 100 million RUB |
| Employees | 20 |
| Under УСН with no VAT now (old rules) | ✅ Eligible |
Because Ivanov didn’t exceed 20 million in 2025, as of **1 January 2026**, he remains exempt from VAT. But if he anticipates growth above that threshold, he should model his net profit after paying 22% VAT or consider opting into reduced VAT rates. If in 2026 his revenue exceeds 20 million (using proper deflator), from that month onward he loses the exemption and must charge VAT.
## Long-Term Strategic Moves
- Consider accelerating revenue or invoicing into 2025 if you are close to thresholds.
- Assess whether shifting some operations or purchase timing could reduce VAT exposure or fixed assets values.
- For those who expect to scale fast, consult with tax professionals about whether UСН remains the optimal format or whether switching to the general taxation regime with full VAT deductibility could yield savings.
By proactively planning, УСН businesses can adapt to the new thresholds, retain benefits where possible, and avoid surprises when filing their first 2026 returns.