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Second attempt. The draft law on sales tax was filed with the Government

19.08.2014
Second attempt. The draft law on sales tax was filed with the Government

The Ministry of Finance sent the draft law on sales tax to the Government of Russia. Those who sell goods and services will pay that tax. The additional income of budgets of the units of the Russian Federation in 2015 are estimated at 195 billion roubles, in 2016 – 211 billion and in 2017 – 230 billion, but only if all regions without exception introduce the tax since 2015 <...>

The imposition of the tax may have an adverse effect on the business, and affect the consumers even stronger. Igor Simonov, Advocate, Partner of the Moscow Barr Association “Knyazev and Partners”, explains: “This may become a reason to “go underground” for many companies and individual entrepreneurs, who work with end consumers. Meanwhile, the burden of the tax will be borne mostly by the end consumers, which will also affect the purchasing capability of the people”. By the way, experts recommend that the lawmakers should clearly indicate the end consumer, otherwise the tax will be paid twice for some goods. Ekaterina Boldinova, Senior Associate of the Law Firm "YUST", says: “Since the sale of goods to the end consumers is taxed, the retailers, who sell goods to individuals and individual entrepreneurs, may face additional difficulties. Therefore, the tax should not be paid at the sale of goods to entrepreneurs”.

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