Russia Increases VAT Rate to 20 Percent

Posted by


The Russian State Duma has approved the raising of the standard VAT rate to 20 percent, up from the previous level of 18 percent. VAT relief goods will not be affected by the hike. The new rate compares with Russia’s neighbors and primary markets as follows:

Country Standard VAT Rate
Azerbaijan 18%
Belarus 20%
China 16%
Estonia 20%
Finland 24%
France 20%
Georgia 18%
Germany 19%
Japan 8%
Kazakhstan 12%
Latvia 21%
Lithuania 21%
Mongolia 10%
North Korea 15%
Norway 25%
Poland 23%
United States 10%

The new changes will come into effect from 1st January 2019, giving countries with both lower VAT rates on Russia’s borders such as Kazakhstan, Mongolia, and North Korea as well as those with higher rates, including Finland, Poland, and Norway something to think about in terms of customs deployment.


About Us

Russia Briefing is produced by Dezan Shira & Associates. The practice advises foreign investors and governments on investment and strategy throughout Asia, and maintains a partner firm relationship in Russia. Please contact us at or visit us at


related-readings_rb-icons_2017 Related Reading:

related-readings_rb-rb-icons_2017Russia Plans to Raise Domestic VAT Rate to 20 Percent in 2019, Export VAT to Stay Zero

Assisting Foreign Investors into Russia

Dezan Shira & Associates´ Russian investment brochure offers an overview of the services provided by the firm – both foreign investment into Russia and Russian investment into Asia. It is Dezan Shira´s mission to guide investors through Russia´s complex regulatory environment and assist with all aspects of establishing, maintaining and growing business operations in the region.