The Russian Ministry of Agriculture Proposes Raising VAT on Dairy Products with Milk Fat Substitutes to 20%
Sourse: vetandlife.ru
The Ministry of Agriculture of the Russian Federation has initiated a change in the taxation of food products, proposing to remove dairy-containing products with milk fat substitutes from the preferential VAT rate.
The corresponding draft government resolution has been developed by the Ministry of Agriculture and published on the federal portal of draft regulatory legal acts.
According to the proposed amendments, manufacturers and importers of a number of products containing milk fat substitutes will no longer be able to apply the reduced VAT rate of 10%. Specifically, this concerns spreads, butter-vegetable blends, dairy-containing drinks, curd and sour cream products, desserts, condensed milk, and ice cream produced using vegetable fats. For these categories of goods, a standard VAT rate of 20% is planned.
At the same time, the 10% VAT benefit will be retained for natural dairy products and drinks that do not contain milk fat substitutes. The draft document also provides for the addition of clarified product codes according to current classifiers, which will allow for a clear distinction between natural and combined products.
Additionally, the Ministry of Agriculture's proposal includes aligning the national list with the commodity nomenclature of foreign economic activity of the Eurasian Economic Union. This will ensure uniform approaches to the taxation of both domestic and imported products.
According to the proposed amendments, manufacturers and importers of a number of products containing milk fat substitutes will no longer be able to apply the reduced VAT rate of 10%. Specifically, this concerns spreads, butter-vegetable blends, dairy-containing drinks, curd and sour cream products, desserts, condensed milk, and ice cream produced using vegetable fats. For these categories of goods, a standard VAT rate of 20% is planned.
At the same time, the 10% VAT benefit will be retained for natural dairy products and drinks that do not contain milk fat substitutes. The draft document also provides for the addition of clarified product codes according to current classifiers, which will allow for a clear distinction between natural and combined products.
Additionally, the Ministry of Agriculture's proposal includes aligning the national list with the commodity nomenclature of foreign economic activity of the Eurasian Economic Union. This will ensure uniform approaches to the taxation of both domestic and imported products.
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