Putin proposed postponing further reductions in the revenue threshold for paying VAT. Now it is 20 million rubles per year

Vladimir Putin proposed postponing the reduction of the revenue threshold at which small businesses must pay VAT. He stated this during a speech at the plenary session of the St. Petersburg International Economic Forum.

The President recalled that the revenue threshold for applying the simplified taxation system has been lowered since 2026 and amounts to 20 million rubles. In 2027-2028 it should decrease further - to 10 million rubles.

According to Putin, this issue was discussed in detail with business representatives and government members. “I consider it possible to postpone further reduction of the revenue threshold. <> And fix it as today at the current level. I won’t give a date, but the further, probably, the better,” Putin said.

The President said that he was asking the government and the State Duma to make the necessary amendments.

• In November 2025, Putin signed a law on a gradual reduction of the threshold for paying VAT by small businesses operating under a simplified taxation system. This law provided that from 2026 the threshold would be reduced to 20 million rubles (businesses must already pay VAT on this amount), from 2027 - to 15 million rubles, from 2028 - to 10 million rubles. Previously, this threshold was 60 million rubles per year.