Change in the VAT rate in the Russian market.
Russian President Vladimir Putin signed the law on raising the VAT rate to 20%, from January 1, 2019. Currently, there are three basic VAT rates in the Russian Federation - 18%, 10% and 0%, as well as settlement rates of 10/110, 18/118 and 15.25%: The rate of 18% is generally accepted. The rate of 10% is used in the implementation of socially significant goods and services. The 0% rate is used mainly for export operations and for the transport of goods, passengers and baggage. Settlement rates are used for charging VAT from prepayments, as well as for other cases when VAT is included in the tax base and need to be extracted from there, and not charged. For food and children's products will remain a 10 percent VAT rate.
In addition, until 2025, there will be a zero VAT rate for air travel to the Crimea and Sevastopol. Also, the zero rate was fixed for air traffic in the regions of the Far Eastern Federal District and the Kaliningrad region. Do not forget to prepare in advance to change the interest rate of VAT. Specify the terms of contracts, update the program, change the printed forms of shipping documents. Consider the specifics of calculating the tax on contracts, payments and shipments, which will be started in December 2018, and completed in 2019, at the new tax rate.