- Taxpayers on the simplified tax system are automatically exempt from VAT if their income in 2024 did not exceed 60 million rubles.
- Organizations and individual entrepreneurs registered in 2025 and immediately switched to this regime also receive exemption.
- The income limit for switching to the simplified tax system increased to 337.5 million rubles for nine months and 450 million rubles per year.
- This change aims to ensure a smoother transition for small companies to the general tax system as they grow.
- If revenue exceeded 60 million rubles in 2024, businesses must choose a VAT rate from January 1, 2025.
- Options include reduced rates of 5 or 7 percent without input tax deduction or standard rates of 20, 10, or 0 percent with deduction.
- Businesses with high payroll costs may benefit from the 5 percent rate.
- Companies with revenue over 250 million rubles should use the 7 percent rate.
- Trading companies with high input VAT should consider standard rates of 10 or 20 percent.
- Exceeding the 60 million ruble threshold makes a business a VAT payer from the month following the excess.
- Buyers can claim tax deductions when dealing with simplified tax system payers with VAT.
- Details are available in the program PRO nalogi.
Source: nalog.gov.ru
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
