Changes in legislation

Starting from 2022, companies from food service industry such as cafes, bars, restaurants, lunch counters, canteens, snack bars etc. are granted a privilege that exempt from VAT payment. It is provided by changes in parts one and two of the Tax Code of the Russian Federation, according to the Federal Law dated 02.07.2021 No 305-FZ.

Tax exempt is limited by three restrictions:

- Annual income should not be higher than 2 billion RUB, it is also an upper limit for the company to be considered as a small and medium-size enterprise;

- 70% of the sum should be received directly from the food service industry;

- salaries and wages of the staff should not be below the average for the region.

In addition, this Law exempts cultural institutions from advance payments of income tax, and regional small business support measures are not the subject to personal income tax and VAT.

Users of Globas have the opportunity to get all available information about all companies considered small businesses, including food service sector if they use “Filters” tool.