Public catering businesses might be exempt from VAT

Using the general tax system, public catering might be exempt from VAT with revenue up to 2 billion rubles. The innovation is planned to be introduced in 2022.

Vladimir Putin proposed launching a pilot project to work out a smoother, more comfortable transition from a simplified tax regime. Companies included in this project will be exempt from VAT if their revenue does not exceed 2 billion rubles per year. At the same time, they will retain the right to pay insurance contributions at a reduced rate of 15% even if the number of employees grows to 1,500 people.

Such measures will help to stimulate the development of companies.