PRESS: Russia to set zero VAT on svcs to overseas flights July 1

MOSCOW, Feb 25 (PRIME) -- The Russian government will set a zero value-added tax (VAT) on almost all services of airports to overseas flights from July 1, while a standard rate of 20% will be introduced for domestic flights, business daily Kommersant reported on Monday, citing a draft order.

Russia does not charge VAT on the six key services on any flights: departure, landing and apron, security, fueling and fuel storage, and navigation. The practice does not allow airports to receive a VAT refund, and the airports include the cost to the service fee. A VAT of 20% is active for the rest of services.

The budget will lose 29 billion rubles due to a zero VAT rate for overseas flights in 2018–2021, the document read.

(65.5149 rubles – U.S. $1)

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