Russia’s Transition to 22% VAT: Key Reminders
for the Current Implementation Phase

As we move through the first month of 2026, the Russian Federation’s new standard VAT rate of 22% (increased from 20%) is now in full effect. Following the January 1st launch, businesses are currently navigating the transition period, specifically regarding corrections and adjustments for transactions initiated in the previous year.

Ongoing Operational Impact:The transition has shifted the calculated VAT rate for downpayments to 18.03% (22/122). For companies operating in Russia, the focus has now turned to ensuring that invoices, returns, and adjustments processed throughout January align with the guidance issued by the Federal Tax Service (Letter No. СД-4-3/11802@).

Critical Transition Scenarios:The Federal Tax Service continues to provide support for specific scenarios occurring this month, such as:

• Shipments made now against advance payments received before the end of 2025.
• Adjustments or returns processed in January for goods originally sold under the 20% rate.
• Mandatory updates for tax agents to ensure full compliance with Federal Law No. 425-Ф3.

Федеральный закон от 28.11.2025 N 425-ФЗ published by the Government of the Russian Federation.

Letter No. СД-4-3/11802@ from December 29, 2025, published by the Федеральная налоговая служба (Federal Tax Service).