VAT

In Russia, the List of Fruits and Berries Taxed at a Reduced VAT Approved

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New HS codes were added to the list of food products taxed at a reduced VAT rate (the decree of the Government of the Russian Federation No. 1952 dated 12/31/2019). Fruits and berries from the list are subject to 10% VAT instead of 20% from October 2019.

In particular, it concerns Russian and imported fresh fruits: apples, pears, quinces, all categories of citrus fruits, grapes, apricots, cherries, cherries, peaches, nectarines, plums, thorns and cherry plums, watermelons, melons, papaya, avocados, dates, figs, pineapples, guava, mango, mangosteens, kiwi, persimmon, barberry, feijoa, medlar; berries: strawberries, raspberries, blackberries, black, white or red currants, gooseberries, cranberries, blueberries, blueberries, cornel, wild berries; as well as planting material of fruit and berry crops: seeds, seedlings, roots, cuttings, and layering.

Bananas, plantains, nuts, as well as any kind of fruit and berry processing products, are not included in the list.

The full version of the document can be found on the Official Internet portal of legal information.

www.fruit-inform.com

Russia’s VAT on Fruit and Berries to be Reduced to 10%

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The Government of the Russian Federation will reduce the VAT on fruit down to 10%. Prime Minister Dmitry Medvedev tweeted that he had decided to reduce the VAT on fruit and berries to 10%, as in his opinion, this should lead to lower prices and to the development of the domestic horticultural economy.

The Prime Minister said that the decision on whether to reduce the tax from 20 to 10% was made after a discussion with members of the government and deputies of the State Duma. Medvedev added that on July 10, during a visit to the headquarters of United Russia, it was agreed that the bill would be submitted by deputies to the State Duma.

The head of the Duma faction of United Russia, Sergei Neverov, said earlier that the bill was ready for submission to the Duma. He also said that all factions consider the issue of supporting fruit and berry producers as a priority, as Russian producers are yet unable to supply the volume that would cover the country’s needs.

Amendments are planned to be made to Article 164 of the Tax Code of the Russian Federation.

The preferential VAT rate of 10% applies to a specific list of goods, including meat, meat products, milk, dairy products, eggs, vegetable oils, margarine, sugar, salt, grain, animal feed, bread and bakery products, fish, seafood, baby and diabetic food. From January 1 of the current year, fruits and berries were taxed at a rate of 20%.

www.freshplaza.com

How to Change the Life of Russians Due to the Increase in VAT

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Due to the weakening of the ruble and is scheduled for 2019, raising the value added tax (VAT) may increase the prices of many goods.

Prices of clothing and footwear in Russia in 2019 may increase by 5-20% due to the weakening of the ruble and the rise in the rate of value added tax (VAT) to 20%.

Now in Russia there are three VAT rates: 0%, 10% and primary by 18%. A zero rate is levied on many kinds of transport services. Preferential 10% are the producers of the food basket (meat, milk, flour, bread, fish), children’s clothes and food, books and printed materials, medical products and medicines. All other categories of goods are at the basic rate, it is something next year and will increase by 2%. Thus, more expensive clothes and shoes, household appliances and electronics, automobiles, furniture, alcohol and tobacco products, gasoline, entertainment, trips, apartments, and housing services.

According to experts, clothing and footwear in the budget segment will rise by 5-10%, and premium — and more by 10-20%.

Pricing in the fashion sector is highly dependent on the exchange rate. With the weakening of the ruble and the rise in VAT, the cost of collections will inevitably increase, and hence the prices will also increase by 5-10%. As for pricing Western brands — it is entirely dependent on currency fluctuations, the Russian manufacturers can reduce the dependence from the course, placing orders to domestic factories, but the fabric still has to import.

The tax increase will hit the market in digital technology. Specialists of the information-analytical Agency TelecomDaily has estimated that prices for equipment will increase by about 5%, while the cost increase will manifest itself in one or two months after the introduction of the new tax. So, if before a decent fridge can be bought for 30 thousand rubles, now the price would be added for at least 1.5 thousand.

Real estate market analysts have warned that after the VAT increase the cost of construction projects will increase by 2-3%. Some experts call the more depressing figures: +10%.

The furniture is too expensive, according to the forecasts of market participants — 1-2%, although some time in the shops will be sold at the old prices previously paid for the furniture.

stopru.com