On 1 October 2026, the Federal Tax Service of Russia (FTS) published an official clarification establishing the procedure for confirming the application of the reduced VAT rate (10%) for children’s goods. This guidance implements amendments to Article 164 of the Russian Tax Code introduced by Federal Law No. 389-FZ dated 29 July 2024, which expanded the list of goods eligible for the reduced rate. The new procedure requires taxpayers to submit a notification to the tax authority confirming that the goods meet the statutory definition of children’s goods, supported by relevant documentation such as certificates of conformity or declarations of conformity to technical regulations. The notification must be filed electronically via the taxpayer’s personal account on the FTS portal no later than the deadline for submitting the VAT return for the tax period in which the reduced rate is first applied. The clarification also specifies that the reduced rate applies only to goods intended for children under 14 years of age, and excludes certain categories such as food products, medicines, and printed publications which remain subject to separate VAT rules. This measure aims to prevent misuse of the preferential rate and ensure uniform application across regions.
Key Takeaways
- Mandatory Electronic Notification: Taxpayers must submit a formal notification through the FTS online portal to confirm eligibility for the 10% VAT rate on children’s goods, replacing previous informal practices.
- Documentary Evidence Required: The notification must be accompanied by certificates or declarations of conformity proving the goods meet safety and quality standards for children’s products.
- Strict Timeline: The notification deadline aligns with the VAT return filing date for the period when the reduced rate is first used, requiring immediate compliance from affected businesses.
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