The government allowed to change the price of road contracts due to the increase in VAT

13 July 2026, Monday

The Government of the Russian Federation has adopted Resolution No. 864, which establishes the procedure for changing the essential terms of contracts for the repair and maintenance of federal highways in connection with an increase in the VAT rate from January 1, 2026.

By agreement of the parties, it is allowed to increase the contract price within the limits of the tax rate increase (for works accepted after January 1) or adjust the volume and types of work without increasing the price. The rules apply to contracts concluded before January 1, 2026, if the new rate was not stipulated by their terms.

Regional and municipal authorities are recommended to take similar measures for road contracts at their levels.

The resolution comes into force on the day of its official publication (July 9, 2026).

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