PM: Tax free system to start working in Russia from October 1

MOSCOW, Jun 15 (PRIME) -- A tax free system will start working in Russia from October 1, Prime Minister Dmitry Medvedev said on Thursday at a government meeting.

“We will discuss amendments to the Tax Code that are necessary for introduction of the tax free system in our country…The system will work from October 1 this year. Foreigners who will leave our country will be able to return value-added tax for goods that they purchase here,” he said.

The payment will amount to the VAT rate of 18% minus commission of companies that will be operators of the system, he said.

Foreigners who come from the countries outside the Eurasian Economic Union will be reimbursed. Introduction of the system will need additional costs. “This year, it will amount to 260 million rubles. But we expect it to return the money in future thanks with growth of the retail turnover,” he said.

(57.0303 rubles – U.S. $1)

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