The State Duma passed a law raising VAT to 22% from 2026.

      November 20, 2025, 16:51 Economy. The State Duma has passed a law raising the value-added tax (VAT) from 20% to 22%, which will come into force on January 1, 2026. At the same time, the reduced 10% rate is retained for socially significant goods.

      The benefits remain for categories such as food products, medicines, medical devices, children's goods, books, magazines and newspapers, as well as pedigree farm animals, TASS writes.

      However, milk-containing products with milk fat substitutes were removed from the list; from 2026 they will be taxed at the full 22% rate.

      Reliefs are provided for small and medium-sized businesses. Entrepreneurs who begin working with VAT for the first time in 2026 and make mistakes will not be immediately fined — a moratorium on bringing them to account is in effect.

      In addition, companies will be allowed to opt out of the reduced rate once if they chose it by mistake. This will allow businesses to correct their tax regime without consequences.

      Also exempt from VAT are organizations that actually carry out the removal of municipal solid waste but do not officially have the status of a regional operator. VAT will also not be charged on the transfer of real estate expropriated for state or municipal needs for which the owner is paid compensation.

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