Published 30 July 2026, Synergy Audit
How VAT is determined under existing contracts when the law changes
Bill No. 1203640-8, awaiting the signature of the President of the Russian Federation, sets out a special procedure for calculating VAT under existing contracts where the tax law changed after the contract was concluded and the seller became liable to pay VAT.
Current rules
The Tax Code of the Russian Federation does not provide for a special procedure.
What changes
The seller will calculate VAT at the calculated rate, treating it as included in the price stated in the contract, if:
- the buyer is not entitled to deduct the VAT;
- the parties have not changed the contract price, or the contract contains no terms on how the parties proceed if the tax law changes.
In this case, VAT is not charged to the buyer on top of the price, and no VAT invoice is issued.
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