The government will introduce amendments on zero VAT for ship repair enterprises
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The Government has prepared amendments to the Tax Code on the exemption of ship repair enterprises from VAT in the amount of 20% when performing these works in docks and shipyards, informed Russian Prime Minister Mikhail Mishustin at a government meeting.
Another condition for a zero VAT rate, agreed upon by the government, was the allocation by the ship repair enterprise of at least 20% of the proceeds from ship repair services for its own development over the course of seven years.
“As a result, businesses will be able to use the saved funds to increase their investment opportunities and invest more in long-term projects. Purchase advanced, expensive equipment that is necessary to service modern high-tech ships and marine equipment,” Mishustin commented on the amendments.
As clarifies The Ministry of Finance of Russia, which prepared the draft law, will have to conclude an investment agreement with the Ministry of Finance and the Ministry of Industry and Trade in order to be exempt from VAT. In addition, enterprises will be able to apply VAT tax deductions at the time of acceptance of goods and services for accounting, and not after the acceptance of work by the customer – this will allow enterprises to keep more financial resources in circulation.
At the moment, minor repairs and maintenance of ships while in port, as well as services for the classification and inspection of ships, have already been exempted from VAT, they added.
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