The state Duma adopted the law on the VAT increase
The state Duma adopted the Law on increasing tax deductions for the added cost from 2019 to 20% from the current 18%.
The document retains on an ongoing basis the rate of insurance contributions to the social extra-budgetary state Fund at 30% instead of planned before the increase.
Also provides for the retention of all existing preferential rates of VAT and the rights of automobile manufacturers to obtain deductions for VAT amounts paid for goods, works and services, even if they were acquired at the expense of budget subsidies or public investment. VAT for air transport
In addition, the Law 2025 extends zero VAT Rate for air transportation of passengers and cargo in the Republic of Crimea and Sevastopol, and Also sets the same rate for such air transportation in the far Eastern Federal district. The validity of the zero Rate VAT on air travel in the Kaliningrad region is Also set to 2025.
currently, domestic air travel subject to VAT at a concessional rate of ten per cent. An exception is made for the Republic of Crimea, Sevastopol and Kaliningrad region, which set a zero VAT (for the Crimea and Sevastopol