Manufacturers of domestic electronics can be exempt from VAT for 10 years

18 March 2020, Wednesday

The state Duma is considering a project that provides for a zero VAT rate for manufacturers of domestic radio-electronic products.

Manufacturers of Russian radio electronics are proposed to impose a value-added tax of 0 percent. The new rule will add part 1 of article 164 of the tax code. If the project is accepted, the changes will be effective from July 1, 2020 to July 1, 2030.

From January 1, 2019, the VAT rate is 20 percent. The authors of the bill believe that if the bid is reset, domestic manufacturers will have an advantage over foreign radio electronics.

Document: Draft of the Federal law from 03.20 No. 912724-7