VAT rate on hamburgers in Russia will increase to 20% – Kommersant
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In Russia, from October 1, 2023, the value added tax (VAT) for fast food will increase to 20%, according to an official letter from the Federal Tax Service (FTS), published on the department’s website.
Currently, hamburgers, sandwiches, cheeseburgers and other similar dishes are subject to VAT at a rate of 10% because they can be classified as non-perishable bakery products. According to information “Interfax”, Russian courts quite often agreed with this approach. From October 1, businessmen working in Russia will no longer be able to pay tax at this rate.
“Taking into account that sandwiches, including hamburgers, cheeseburgers and other similar products, which correspond to the group codes of the All-Russian Classifier of Products by Type of Economic Activities (OKPD) OKPD2 10.85.19, are not listed in list No. 908, then when selling them, a VAT rate of 20%,” say tax officials.
Representatives of the fast food restaurant chains Vkusno – period, Rostic’s and Burger King told Interfax that they are ready to fully comply with the new rules and pay VAT on hamburgers, cheeseburgers and other similar dishes at a rate of 20%. Whether they are going to increase product prices in connection with upcoming changes in taxation is not specified.
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