Russia may lower VAT from 18% to 10%

The Russian Federation government has agreed to consider the possibility of lowering the domestic VAT rate from the current 18 percent to 10 percent, as was proposed by the Russian Union of Industrialist and Entrepreneurs (RSPP). The RSPP believes that the lowering of the current VAT rate is a necessary step if the government proves unable to improve VAT management and rebate procedures. Currently, more than 10 percent of VAT rebate cases are dealt with by the courts.