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State Duma adopted a law on zero VAT on air travel bypassing Moscow - EastRussia | Far East

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The State Duma adopted a law on zero VAT on air travel bypassing Moscow

The State Duma adopted a law on zero VAT on air travel bypassing Moscow
Photo: pixabay.com

The State Duma adopted in the third reading amendments to the Tax Code of the Russian Federation, which imply a zero VAT rate on all domestic air services that do not pass through Moscow and the Moscow Region. This was reported on the website of the State Duma.

At the moment, the provision of passenger and baggage services on domestic flights is subject to VAT at the rate of 10% up to 2021, and after this date it will increase to 20%. The zero VAT rate was applied if the point of departure or arrival was located in the Far Eastern Federal District, the Republic of Crimea or the Kaliningrad region. This measure will be valid until 1 January 2025.

With the entry into force of the new law, all flights whose points of departure, arrival and intermediate stopping points are located outside of Moscow and the Moscow region will also be subject to zero VAT, indefinitely.