The Ministry of Finance clarified the procedure for applying the 22% VAT rate when executing contracts under 44-FZ
The Russian Ministry of Finance clarified the issues of contract execution in connection with the change in the value-added tax rate from January 1, 2026.
The ministry recalled that the previously valid norm of Part 54 of Article 112 of Law No. 44-FZ, which allowed for changes in essential terms of the contract due to an increase in the VAT rate, was temporary and applied only in 2019. Currently, Law No. 44-FZ contains other mechanisms for changing the terms of contracts, including those provided for in Articles 95 and Part 65.1 of Article 112 of Law No. 44-FZ.
According to the position of the Ministry of Finance, by agreement of the parties, it is allowed to change any essential terms of the contract concluded before January 1, 2027, if there are circumstances beyond the control of the parties that make it impossible to fulfill it, subject to an appropriate decision by the Government of the Russian Federation, the authority of the subject of the Russian Federation or the local administration.
At the same time, it was clarified that from January 1, 2026, the VAT rate of 22% applies to goods, works and services accepted after the specified date, regardless of the date of conclusion of the contract. Tax legislation does not provide for exceptions for continuing contracts.
If the contract provides for execution stages, the 20% VAT rate is applied to the stages accepted by the customer before January 1, 2026, and the 22% VAT rate is applied to the stages accepted starting from January 1, 2026. Payment in 2026 for works accepted in 2025 does not entail VAT recalculation.
Document: Letter from the Ministry of Finance of Russia dated 19.01.2026