The government of the Russian Federation proposes to reduce the threshold for VAT payments by small and medium-sized businesses in stages: in 2026 - up to 20 million rubles, in 2027 - up to 15 million rubles and in 2028 - up to 10 million rubles. This was stated by Prime Minister Mikhail Mishustin at a cabinet meeting during the discussion of amendments to the second reading of the draft federal budget for the next three years and related legislation, according to a transcript posted on the Cabinet's website.
According to M.Mishustin, the business proposal to preserve the possibility of applying the patent taxation system for retail stationary trade in rural and hard-to-reach settlements has been taken into account.
The Cabinet of Ministers also proposes to maintain measures for the development of domestic software, preferential treatment for IT companies on VAT when exercising rights to proprietary developments.
The Prime Minister noted that these initiatives do not envisage changes in the total amount of budget expenditures, but make adjustments that take into account the specifics of specific industries and, as a result, help to better unlock their potential.
Recall that on October 22, 2025, the State Duma approved in the first reading a draft amendment to the Tax Code proposing to raise the standard VAT rate to 22% from 20%, as well as lower the income threshold for VAT payments by small and medium-sized businesses to 10 million rubles from 60 million rubles. The amendments were supposed to come into force in 2026.
