Per the Federal Law of July 12, 2024 N 176-FZ, the criteria for applying the simplified tax system by a company will change. Also, companies on the simplified tax system will pay VAT, but this amendment will not affect everyone.
From January 1, 2025, a company has the right to switch to the simplified tax system if its revenue for nine months does not exceed 337.5 million rubles. Previously, the tax code set a limit of 112.5 million rubles, indexed yearly. In 2024, the limit was 149.5 million rubles.
The annual income limit for applying the simplified tax system will be 450 million rubles, and the amount is not indexed. In 2024, the limit was 199.35 million rubles for standard rates and 265.8 million for increased rates.
From 2025, the increased simplified tax system rates of 8% and 20% will be canceled.
The limit of the value of fixed assets has been increased from 150 to 200 million rubles. The deflator coefficient will index the amount.
The use of the simplified tax system no longer exempts from VAT. However, companies whose income for the previous calendar year did not exceed 60 million rubles will be exempt from the simplified tax system. Companies do not have to apply for VAT exemption; tax authorities will carry out this process automatically.
From the 1st day of the month following the month in which the income limit was exceeded, the VAT exemption does not apply. In this case, when applying the simplified tax system, reduced VAT rates are established:
From 2025, the increased simplified tax system rates of 8% and 20% will be canceled.
The limit of the value of fixed assets has been increased from 150 to 200 million rubles. The deflator coefficient will index the amount.
The use of the simplified tax system no longer exempts from VAT. However, companies whose income for the previous calendar year did not exceed 60 million rubles will be exempt from the simplified tax system. Companies do not have to apply for VAT exemption; tax authorities will carry out this process automatically.
From the 1st day of the month following the month in which the income limit was exceeded, the VAT exemption does not apply. In this case, when applying the simplified tax system, reduced VAT rates are established:
5% — if the amount of income does not exceed 250 million rubles per year;
7% —if the income is more than 250 million rubles but does not exceed 450 million rubles per year.
Reduced rates do not apply when importing goods into the Russian Federation. When applying reduced VAT rates of 5% and 7%, there is no right to deduct "input" and "import" VAT. Taxpayers should use reduced rates during the calendar year, except in the case of losing the right to apply them.
As an option, a company can apply the standard VAT rate (20% or 10%) and deduct input VAT.
There is no need to additionally notify the tax authority about the start of applying the VAT rate of 5% or 7%.
From 2025, organizations and individual entrepreneurs using the simplified tax system and paying VAT will need to file quarterly VAT returns.
As an option, a company can apply the standard VAT rate (20% or 10%) and deduct input VAT.
There is no need to additionally notify the tax authority about the start of applying the VAT rate of 5% or 7%.
From 2025, organizations and individual entrepreneurs using the simplified tax system and paying VAT will need to file quarterly VAT returns.
