Russia Tax Agency Issues VAT Guidance for Taxpayers Under Simplified Taxation System

The Russian Federal Tax Service Oct. 17 issued VAT guidance for taxpayers under the simplified tax system. The guidance includes that: 1) starting Jan. 1, 2025, businesses and individual entrepreneurs under the simplified system must pay VAT if 2024 income exceeds 60 million Russian rubles (US$623,563); 2) taxpayers with income under the threshold are automatically exempt; 3) taxpayers become VAT payers the first day of the month following the month in which income exceeds 60 million rubles; and 4) simplified system taxpayers required to pay VAT from Jan. 1, 2025, can elect the generally established 20 percent, 10 percent, or ...