The government proposed to return VAT canceled 13 years ago on apartments
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The Russian government has submitted a draft law to the State Duma that removes the services of developers for the transfer of apartments that are built as part of shared construction from the current zero VAT. VAT on apartments was abolished in Russia in 2010. Cabinet bill placed in the base of documents of the lower house of parliament.
Now VAT is not charged on all services of developers under agreements for participation in shared construction, with the exception of industrial facilities. The Ministry of Finance proposes to add another exception – residential premises (apartments) intended for temporary residence (without the right to permanent registration). In addition, zero VAT, according to the amendments, should not be applied when performing construction and installation work and other work carried out during the creation of apartments.
Earlier it was reported that the Russian authorities think also reduce the tax on income from renting out apartments – from 6% to 4%. Such plans are considered at the level of the Ministry of Finance and the Federal Tax Service. Now those who rent apartments have to pay at least 6% to the budget. Such a rate does not suit them, and they go into the gray zone, where up to 90% of the rentier works.
Read more about the initiatives of the authorities in the material “Kommersant” “Taxes will be settled in apartments”.
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