OREANDA-NEWS  The State Duma adopted in the second reading a draft law on the revision of the VAT rate from 20% to 22% from January 1, 2026, while maintaining a preferential rate of 10% for all socially significant goods. The third reading is scheduled for November 20.

Among the goods for which the preferential rate remains are food, medicines and medical products, children's goods, periodicals, books, and breeding farm animals.

At the same time, in the second reading, dairy products with a milk fat substitute are excluded from the list of goods taxed at a preferential rate. Now they will be taxed at a rate of 22%.

In addition, a moratorium is being introduced on bringing to justice small and medium-sized entrepreneurs who switched to VAT for the first time in 2026 and committed violations under it during this period. Such entrepreneurs are also given the right to waive the application of reduced VAT rates once. This is done so that those who made the wrong decision to apply the reduced rates could change it, Deputy Finance Minister Alexei Sazanov explained last week.

And for organizations and individual entrepreneurs using the Unified tax System, which have concluded concession agreements for public utilities located in settlements with a population of less than 100,000 people, the possibility of applying VAT rates of 5% and 7% is provided. We are talking about heating, water supply, and sanitation facilities.
For legal entities deprived of the status of a regional operator for the management of municipal solid waste, but performing its functions, the possibility is introduced to apply VAT exemption as long as they perform these functions.

In addition, the sale of excisable sugar-containing beverages by public organizations of people with disabilities is exempt from VAT, as well as the transfer of real estate objects that are seized for state and municipal needs and for which compensation (compensation) is provided to the taxpayer.