Putin extended the VAT exemption for small businesses on USN until 2030

Russian President Vladimir Putin has signed a law that preserves the annual income threshold of 20 million rubles until 2030 to exempt small businesses from paying value-added tax (VAT) under the simplified taxation system. The document was published on the official legal information portal on July 4.

According to the law, organizations and individual entrepreneurs using the tax system will be able to avoid paying VAT in 2027-2029 if their annual income does not exceed 20 million rubles.

Previously, this threshold was planned to be reduced to 15 million rubles from 2027 and to 10 million rubles from 2028. Now the reduction of the threshold to 15 million rubles has been postponed to 2030, and to 10 million rubles — to 2031.

Take evasive action: tax debts of businesses and citizens have reached a record 4 trillion

How will the authorities collect arrears and who is at risk of going bankrupt

Putin said during the plenary session of the St. Petersburg International Economic Forum (SPIEF-2026) on June 5 that he considered it possible to further lower the revenue threshold when switching to the USN. The Head of State also noted that this issue had been discussed in detail both with representatives of the business community and with the government.