Price adjustments have been provided for state construction contracts due to an increase in VAT
The Government of the Russian Federation has published a draft providing for the possibility of adjusting the price of government contracts in connection with an increase in the value-added tax rate in accordance with the legislation of the Russian Federation.
The amendments relate to contracts concluded before January 1, 2026 for the performance of engineering surveys, architectural and construction design, construction, reconstruction, technical re-equipment, major repairs of construction facilities, as well as restoration of cultural heritage sites for federal needs. Acceptance of such contracts should take place after January 1, 2026.
The price can be adjusted before October 1, 2026 by agreement of the parties within the limits of the VAT rate increase, if the new rate was not stipulated by the terms of the contract.