Contract price change due to VAT increase – only if there is a limit of budget obligations
In connection with the increase in the VAT rate in the Federal law of April 5, 2013 № 44-FZ "On the contract system in the procurement of goods, works, services for state and municipal needs" included provisions under which it is allowed to change the price of the contract concluded before January 1, 2019 within the increase in the tax rate.
To change the price of the contract, the following conditions are provided simultaneously:
the change is made only until October 1, 2019 and by agreement of the parties;
only within the limits of increasing the VAT rate and only for goods, works, services in respect of which this rate has increased, and payment of which is carried out after January 1, 2019.;
if the increased size of the VAT rate was not provided for by the terms of the contract, including the justification of the initial/ maximum contract price.
At the same time, there is another condition for state and municipal customers – recipients of budgetary funds: they can change the price of the contract only within the limits of the budget obligations for the period of execution of the contract.
The Ministry of Finance of Russia emphasizes that in the absence of the institution of free limits of budgetary obligations, the introduction of these changes in contracts is possible only after bringing additional l.
Document: Information letter No. 24-04-02/16837 of the Ministry of Finance of 14 March 2019