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The Ministry of Finance has banned voluntary VAT for small businesses under the simplified tax system
In Russia, new VAT rules will come into force next year. The Finance Ministry reported that companies and individual entrepreneurs using the simplified tax system with an income of up to 60 million rubles per year will be exempt from value-added tax (VAT).
The ministry added that this category of legal entities and entrepreneurs will also not have the opportunity to voluntarily pay taxes.
The authorities have retained this option for new and small businesses that do not exceed the limit. However, small businesses cannot include “input VAT” in their deductions and payment is required to issue invoices with VAT included.
According to experts, including small businesses in the VAT chain will increase their competitiveness. However, voluntary payment of taxes seems inappropriate.