Russia, on 25 April 2025, temporarily suspended penalties for late VAT return submissions in 2025 for businesses using the simplified tax regime who, from 2025, are required to calculate and pay VAT.
Taxpayers using the simplified taxation system will not be held responsible for failing to submit the VAT return for the tax period in which they first become responsible for calculating and paying VAT, as stipulated in paragraph 1 of Article 119 of the Tax Code of the Russian Federation, for a period beginning between 1 January and 31 December, 2025.
“Penalties will not be applied to them for failure to submit the first VAT tax return on time if such a tax return is submitted for the first time in any of the quarters of 2025,” according to the government’s Telegram channel.
Under the updated Tax Code for taxpayers using the simplified tax regime, the revenue threshold for taxation was raised from RUB 265.8 million to RUB 450 million, and the cap on fixed asset value increased from RUB 150 million to RUB 200 million. Businesses exceeding RUB 60 million in annual revenue are now required to register for VAT.
The suspension of penalties, introduced by Resolution No. 530, took effect retroactively from 1 January 2025.
