The initiative seeks to enhance domestic drone manufacturing, and the zero VAT rate is expected to remain until 31 December 2027. 

Russia’s parliament has proposed draft law no. 962796-8 aimed at boosting domestic drone production. It proposes extending the zero VAT rate to include the sale of civil unmanned aerial vehicles (UAVs) manufactured in the Eurasian Economic Union (EAEU) weighing between 0.15 and 30 kg, as well as sales of engines, spare parts, and components for their production and repair.

The zero VAT rate will also apply to the import of these spare parts and components.

This draft was submitted to the State Duma on 8 July 2025.

Currently, the zero VAT rate only applies to UAVs weighing over 30 kg.

To qualify for the zero VAT rate, taxpayers must provide tax authorities with:

  • A sales contract or its copy for UAV sales;
  • An extract from the register of Russian industrial products confirming that the UAVs are listed, and
  • Documents confirming the transfer of the UAVs to the buyer.

The zero VAT rate will remain in effect until 31 December 2027, with the possibility of extension.

If adopted, the law will take effect one month after its official publication, but no earlier than the start of the next VAT period.