Effective 1 October 2026, the Federal Tax Service (FTS) of Russia has implemented a revised confirmation procedure for applying the reduced 10% VAT rate to children’s goods, as stipulated by amendments to Article 164 of the Russian Tax Code. Previously, taxpayers could apply the preferential rate based on broader documentation; the new regulation mandates that taxpayers must possess specific information regarding a valid certificate of conformity or a declaration of conformity for each qualifying product at the time of sale. This measure aligns with the government’s ongoing effort to tighten VAT compliance and prevent unjustified application of reduced rates. The changes are enacted under Government Decree No. 1312 dated 16 August 2026, which updates the list of goods eligible for the 10% rate and the corresponding documentary proof requirements. Taxpayers must now ensure their accounting systems capture and retain the requisite certification data for each transaction to withstand audit scrutiny.
Key Takeaways
- Mandatory Certification Data: Taxpayers applying the 10% VAT rate must hold and record the certificate of conformity or declaration of conformity details for each children’s good sold; absence of such data disqualifies the preferential rate.
- Retroactive Compliance Risk: Since the rule took effect on 1 October 2026, any sales from that date without proper certification evidence may be re-assessed at the standard 20% VAT rate, exposing companies to additional tax, penalties, and interest.
- Systemic Accounting Updates Required: Enterprises must update ERP and invoicing systems to capture certification identifiers at point of sale and integrate validation checks to ensure only properly certified goods receive the reduced rate.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement