VAT in Russia for foreign companies: registration, rates and recovery

How VAT works for a foreign-owned business in Russia — the 22% standard rate from 2026, reduced and zero rates, when you register, and how to recover input VAT.

VAT is one of the two taxes a foreign-owned trading business in Russia deals with most (the other being corporate income tax). Getting the rate, registration and recovery right keeps VAT a pass-through rather than a cost. This guide covers the essentials as they apply to foreign companies.

The rates

From 2026 the standard VAT rate is 22% (raised from 20%). A reduced 10% rate applies to certain foods, children's goods, medicines and printed matter, and a 0% rate applies to exports and qualifying international transport. The rate that applies depends on what you sell.

When you register

A Russian company is within the VAT system by default and files VAT returns quarterly, by the 25th of the month following the quarter, paying in three instalments. Certain small businesses on special regimes may fall outside standard VAT, but most foreign-owned trading entities are fully within it.

Input VAT and recovery

VAT you pay on business purchases and on imports — input VAT — is generally recoverable against the VAT you charge on sales, provided the documentation is correct and timed properly. For importers, import VAT is recoverable by a VAT-registered company, which is why registration and clean paperwork matter for cash flow.

Common pitfalls

The usual problems are documentation (invoices that don't support recovery), timing (claiming in the wrong period), and treatment of cross-border and digital services, which have specific rules. For foreign-owned businesses, aligning VAT with customs on imports is where value leaks if the two are handled separately.

Getting it right

We handle VAT registration, quarterly returns, input-VAT recovery and the import-VAT interaction, so VAT stays a flow-through rather than quietly becoming an expense. Where digital or cross-border services are involved, we confirm the correct treatment up front.