Russia discusses raising the zero VAT threshold for public catering
The authorities are discussing an increase in the threshold for catering companies which allows them not to pay value added tax (VAT) - from 2 to 3 billion roubles a year, three sources in business circles told Izvestia. The press service of the Ministry of Finance confirmed that this issue is being worked out jointly with the Federal Tax Service.
A meeting on this topic was held in the Ministry of Finance with the participation of representatives of the Ministry and business on January 27. The department conceptually supported the initiative, said interlocutors familiar with the discussion.
Now restaurants are exempt from VAT if the total income of the company per year does not exceed 2 billion and catering services account for at least 70% of all earnings.
In December 2024, Opora Rossii sent a letter to Prime Minister Mikhail Mishustin with a request to raise the zero VAT limit to 3 billion (Izvestia has the document). It says that the measure will stimulate further development of the industry and provide additional revenues to the budget by "whitewashing" the catering market.
The letter also states that taking into account the accumulated inflation, the threshold should be raised. The current limit of 2 billion leads to the fact that restaurateurs, when approaching the limit, are forced to abandon development, sell the business or hide income.
"According to rough calculations, about 80% of companies in the catering industry earn less than 2 billion rubles a year. And in the case of an increase in the threshold, the number of those who will fall under zero VAT may increase to 90-95%," - predicts analyst Freedom Finance Global Vladimir Chernov.
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