Transition to 22% VAT Rate
Key updates in VAT calculation
At the end of last year, the Federal Tax Service (FTS) of Russia and the Ministry of Finance offered some clarifications regarding the major VAT changes effective 1 January 2026. Here is a detailed breakdown.
Recommended procedure for transitioning to the 22% VAT rate
When transitioning from the 20% to the 22% VAT rate, the taxpayers are advised to follow the approaches outlined in the official FTS letter dated 23 October 2018, No. SD-4-3/20667@ (see also FTS letter dated 29 December 2025, No. SD-4-3/11802@ and the related guidance).
New invoice, purchase ledger, and sales ledger forms
A draft resolution of the Government of the Russian Federation ‘On Amendments to Decision No. 1137 of 26 December 2011’ has been prepared.
Before the official adoption of the draft resolution, the FTS has issued recommended formats for invoices, purchase ledgers, and sales ledgers for immediate use (see FTS letter dated 26 December 2025, No. SD-4-3/11730@).
Ministry of Finance of Russia clarifies VAT treatment for payment market participants
Effective 1 January 2026, the VAT exemption for acquiring, processing, and bank card servicing services has been revoked. However, according to the Ministry of Finance of Russia (letter No. 03-07-05/126006 dated 24 December 2025), the following should not be subject to VAT:
- fund transfers between bank accounts, including those used for card settlements, that generate interbank fees;
- fund transfers using the Fast Payments System (FPS) through bank accounts, that also generate interbank fees;
- banking services for providing account statements and balance information—including via communication means.
