On 15 October 2026, Deputy Finance Minister Andrey Vorontsov confirmed that the Ministry is drafting amendments to the Federal Law “On Timber Sales” (No. 22-FZ) and related tax codes to tighten control over roundwood exports and combat under-invoicing schemes. The proposed changes, developed jointly with the Ministry of Natural Resources and the Federal Customs Service, include mandatory electronic tracking of timber from harvest to border crossing, revised export duty calculation methodologies based on real-time market prices, and enhanced VAT anti-fraud measures for domestic timber transactions. The initiative follows a 2025 audit revealing 15% average undervaluation in customs declarations for high-value species, resulting in an estimated 40 billion ruble annual revenue loss.
Key Takeaways
- End-to-End Digital Tracking: A unified “LesEGAIS” system will record each log’s origin, volume, and quality, linking harvest permits to export customs declarations to prevent substitution and misclassification.
- Dynamic Export Duty Formula: Duties for unprocessed roundwood will shift from fixed rates to a reference-price mechanism updated monthly, aligning with global benchmarks and reducing transfer pricing manipulation.
- VAT Compliance Reinforcement: Domestic buyers of timber will face joint liability for VAT understatement by suppliers, extending the “good faith purchaser” defense only to those verifying counterparties via the new tracking system.
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