On Oct. 17, RUS Tax issued simplified tax system recommendations.
RUS Tax issued VAT methodological recommendations of simplified tax system users.
Recommendations
The recommendations outline how to pay VAT and which VAT to choose using the simplified tax system if the goods were paid for in 2024 and shipped in 2025.
From Jan. 1, 2025, firms and individual entrepreneurs on the simplified tax system are recognized as VAT payers but those with income under 60mn RUB are exempt.
The exemption is automatic, taxpayers do not need to specifically apply to the tax office with any application, but transactions are not exempt from VAT when the STS taxpayer is a tax gent for VAT or when he must pay VAT when importing goods.
Simplified taxpayers are obliged to pay VAT from Jan. 1, 2025, can apply generally established VAT rates (20%, 10%, 0%) or choose a special rate of 5% or 7%.
It was clarified by RUS Tax that the special rate depends on annual income received - from 60mn RUB to 250mn RUB and from 250mn RUB to 450mn RUB, respectively.
Effectiveness
Simplified tax system payment rules are effective Jan. 1, 2025.
