Reference
The resolution was drafted by the Ministry of Industry and Trade under Paragraph 2 of Government Resolution No. 372 On Approving the List of Production Equipment, Including Components and Spare Parts, for Which Equivalents are not Manufactured in the Russian Federation and on Which Imports Into the Russian Federation are Not Subject to VAT.
The document amends several codes of the list and specifies additional production equipment categories.
Currently, VAT payments are charged on imports of production equipment, which adds to corporate outlays during the implementation of production modernisation and retooling programmes. Exempting national companies implementing comprehensive production modernisation and retooling programmes from VAT payments on the import of production equipment for which equivalents are not manufactured in the Russian Federation will enable them to purchase the equipment needed to introduce advanced technologies at a lower cost.
Payers will be reimbursed for VAT payments collected during equipment purchases after the equipment is registered as part of their fixed assets, so the federal budget will incur no losses after a failure to collect this tax during imports of equipment.
The implementation of the provisions in the document will enable new high-tech production facilities to be created and the competitiveness of products to be increased.