Overview of the New Rules
As of 1 January 2026, the threshold for businesses under the УСН (simplified taxation) regime in Russia to stay exempt from VAT is significantly reduced from ₽60 million in 2025 to ₽20 million. It is scheduled to further decrease to ₽15 million in 2027 and ₽10 million from 2028 onward. (nalog.gov.ru)
If your business exceeds these thresholds for income earned, you're required to register for VAT, file VAT returns, and may have to apply VAT to your sales. Smaller businesses staying under the threshold gain automatic exemption. (nalog.gov.ru)
VAT Rate Options Under УСН
If you cross the threshold:
- Standard VAT rate of 22% applies with the right to deduct input VAT. (nalog.gov.ru)
- Or choose special rates of 5% (for revenues between ₽20 million and ₽272.5 million) or 7% (revenues above that but under elevated caps), without input deduction. (nalog.gov.ru)
Businesses newly required to charge VAT in 2026 have flexibility: they can adopt special VAT rates initially, then switch to the standard 22% with deductions under certain conditions. (nalog.gov.ru)
Practical Implications & Examples
- A café with revenue of ₽25 million in 2025 now must register for VAT. It might apply 22% standard VAT (with deductions) or 5% special rate (without deductions).
- A small IT startup with ₽15 million revenue remains exempt in 2026 but must monitor revenue growth—crossing ₽20 million will trigger VAT obligations.
- In Volgograd Oblast, reduced rates are in effect: 1% (on gross income) or 5% (income minus expenses) for eligible УСН taxpayers. (nalog.gov.ru)
Strategic Moves & Tax Planning Tips
- Forecast income carefully for both 2026 and upcoming years—crossing thresholds may require systems changes and new compliance.
- Choose your VAT rate wisely. If your inputs are VAT-heavy, 22% with deductions may be more favorable despite administrative burden.
- Time registration carefully: once income threshold is exceeded, VAT status starts from the first day of the month after excess.
- Evaluate combining УСН with patents (ПСН): ПСН also has reduced income thresholds, so mixing regimes could impact obligations. (nalog.gov.ru)
Compliance Checklist
- Check 2025 revenue—did you exceed ₽20 million? If yes, register for VAT.
- Align accounting systems to support input VAT deductions for standard rates.
- Collect VAT-allowable invoices and retain them.
- Track both gross and net income under УСН if switching regimes.
Conclusion
The reforms aim to broaden VAT compliance while offering special rates to ease the burden. Small businesses now need proactive tax planning to stay compliant and minimize costs. Decisions made early—such as whether to adopt standard or special VAT rates—can lead to significant savings and fewer surprises down the road.