Russian Finance Ministry Proposes Raising VAT to 22% from 2026

The Russian Finance Ministry has proposedincreasing the value-added tax (VAT) from 20% to 22% starting January 1, 2026, Orda.kz reports.

The proposal is included in the draft federal budget for 2026–2028, according to a press release published by the ministry. According to the ministry’s website, the preferential VAT rate of 10% will remain in place for socially important goods, including food, medicines and medical products, and children’s goods. 

The ministry also proposed lowering the revenue threshold that triggers VAT liability from 60 million rubles to 10 million rubles.

In addition, the draft introduces new measures for the gambling industry: a 5% tax on accepted bets for bookmakers, as well as a 25% corporate profit tax rate specifically for betting companies.

Officials noted that the additional revenue generated from the VAT hike would be directed toward “financing defense and security.”