Compliance
Navigating Russia’s New Tax Shifts: From NDS Hikes to Penalties for Non-Filers
Russia in 2026 has rolled out sweeping tax reforms—from the VAT rate increase and special rules for simplified tax regime users, to the removal of penalties for ‘zero’ declarations. Here’s what individuals and businesses need to know to stay compliant.
By NomadicTax Research Team • 5-8 min read • August 15, 2026
## Key Changes in Russian Tax Policy Effective in 2026
Russia’s tax landscape has undergone major changes since **1 January 2026**. Below are the most significant shifts affecting individuals (ФЛ), self-employed / individual entrepreneurs (ИП), and legal entities (ЮЛ). All are drawn from official announcements by the Федеральная налоговая служба (FNS) via nalog.gov.ru. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
### 1. VAT (НДС) Rate Increase and Threshold Reductions
- The **standard VAT rate** rose from **20% to 22%**. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
- Under the simplified taxation system (УСН), **mandatory VAT registration** now applies to taxpayers whose income exceeds **20 million RUB** in 2025. That threshold drops to **15 million RUB in 2027**, and **10 million RUB from 2028 onward**. ([nalog.gov.ru](https://www.nalog.gov.ru/new2026/?utm_source=openai))
### 2. New Rules for Special Tax Regimes and Entrepreneur Options
- If in December 2025 an индивидуальный предприниматель was using the **patent system (ПСН)** and had income over **20 million RUB**, they now may **retroactively switch** to the simplified system (УСН) since 1 January 2026—provided they notified authorities by **1 June 2026**. ([nalog.gov.ru](https://www.nalog.gov.ru/rn77/about_fts/about_nalog/16621226/?utm_source=openai))
- Such entrepreneurs may also change the **object of taxation** under the УСН (i.e., choosing 'income minus expenses' vs. 'income only') under similar conditions. ([nalog.gov.ru](https://www.nalog.gov.ru/rn77/about_fts/about_nalog/16621226/?utm_source=openai))
### 3. Penalty Relief and Simplified Liability for Taxpayers
- From **1 July 2026**, penalties are removed for **failing to submit “zero” declarations** (e.g., when no tax or social contributions are due). Similarly, individuals who failed to file 3-НДФЛ declarations for property sales or gifts—if those transactions were reported via Росреестр—will not face fines. ([nalog.gov.ru](https://www.nalog.gov.ru/rn19/news/tax_doc_news/16632520/?utm_source=openai))
- Also, administrative liability (КоАП) for late submissions is softened: the law enacted 26 June 2026 (№ 201-ФЗ) abolished fines for some delayed declarations and clarified simplified procedures for disputing liability. ([nalog.gov.ru](https://www.nalog.gov.ru/rn92/news/activities_fts/16635790/?utm_source=openai))
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## Practical Implications & Strategies
| Stakeholder | What to Do | Key Cautions |
|-------------|------------|---------------|
| Small businesses under УСН | Check 2025 income. If above 20 M RUB and formerly under ПСН, consider retroactive switch. Submit required notifications by deadline. | Missing forms or late submissions may invalidate switch. Notify with correct codes as specified (e.g., code “4” for December 2025 ПСН holders). ([nalog.gov.ru](https://www.nalog.gov.ru/rn77/about_fts/about_nalog/16621226/?utm_source=openai)) |
| Freelancers and property sellers | Understand when the “zero property filing” exemption works: property sales reported via Росреестр trigger automatic tax authority awareness. | Non-reporting or reporting outside mechanisms still leave exposure to penalties. Be sure the registry records your specific transaction. |
| Companies breaching VAT thresholds | Plan for VAT registration earlier. Analyze likely income trajectory so you’re not surprised mid-year. | Changing tax regime mid-year doesn’t adjust earlier decisions retroactively unless notification deadlines met. |
| All taxpayers | Leverage the relaxed liability rules where possible—especially for administrative and procedural errors. | These reliefs **do not cover cases of fraud, intentional evasion, or when actual taxes due are understated**. |
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## Case Study Example
**Scenario**: Elena runs a design studio as an individual entrepreneur. In December 2025, she operated under the patent system and made 25 million RUB in 2025. Beginning January 2026, she may switch to the УСН regime and the “income minus expenses” object—if she submitted a **notification by 1 June 2026**. Resulting tax reporting, deductions, and VAT liability will follow УСН rules. She must also fill the correct code (“4”) in her notification, per the new clarifications. ([nalog.gov.ru](https://www.nalog.gov.ru/rn77/about_fts/about_nalog/16621226/?utm_source=openai))
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## Bottom Line
These reforms mark a shift toward **greater flexibility**, **lower penalties for administrative mis-steps**, and a gradual tightening of tax thresholds—especially for VAT and special regimes. If you’re in Russia and fall into small business, self-employed, or occasional income generation, check your income data for 2025, ensure proper notifications, and review whether the new VAT rate and thresholds affect you.
Oppositely, if past incomes weren’t tracked, or you missed deadlines, the transitional period may be less forgiving. Professional advice—particularly in tax regime switching—is now highly valuable.