Finance Ministry Prepared for Discussion on Lowering VAT for Public Food Items to 3%
Revamped Restaurant Talk
Mikhail Goncharov, the visionary behind the "Teremok" restaurant chain, recently tossed out a proposal to Vladimir Putin and the members of "Delovaya Rossiya" — slash the VAT (Value Added Tax) rate for catering joints down to a scrumptious 3%.
Why, you ask? Well, according to the man himself, current VAT-paying establishments in the catering biz that don't qualify for exemption (a perk that's been around since 2022) are shouldering a burdensome 20% tax rate, but they only pay a tax credit that ranges from 3 to 4%. This inconsistency, Goncharov reckons, often leads to tax ruckuses. He argues that streamlining the tax process and creating a uniform 3% VAT rate wouldn't pinch the federal budget too hard.
Now, hold your breath, folks! Early reports hinted that the Ministry of Finance and the Federal Tax Service were cookin' up a plan to lighten the tax load for big dining networks. For now, companies raking in less than 2 billion rubles get a VAT holiday and reduced insurance contributions of 15% instead of 30% — provisions put in place in 2021 to help the industry weather the pandemic storm. However, large networks are sweating it out, losing their competitive edge, while medium-sized eateries are keeping their growth on a leash to dodge the label of ‘large’. The Ministry of Finance has floated the idea of raising the VAT exemption limit for the catering scene to 3 billion rubles or establishing a non-creditable VAT rate of 2-5%.
Seems like Anton Siluanov, the Finance Minister, is down with the plan. He said, "We've seal-the-deal'd on raising the VAT exemption threshold from 2 to 3 billion rubles, and there's a bill in the second reading."
Siluanov also mused that a 3% tax-free VAT rate might be on the cards, but he wants to run the numbers again. "We're game for considerin' 3%, maybe even 3-4%, but we gotta run some more calculations," he said, "And we're ready to kick off discussions with the peeps in the catering biz."
By the way, remember that time DK.RU reported that Russia's Ministry of Industry and Trade saw a wealth of opportunities in the development of national cuisine? Well, they're cookin' up a storm now, and a working group will be hatched to churn out a standard for Russian cookin'. Despite there being no official term or in-depth description of Russian cuisine at the policy level in Russia, national dishes are a crucial part of the country's cultural tapestry.
In an uptick of good news for the restaurant scene, from May 1 to 11, 2025, Russian eateries witnessed a 57% increase in turnover compared to the same period the previous year. The number of transactions jumped by 43%, and the average tab soared by a tasty 10% to 2,584 rubles, according to a survey by "YooMoney". Street food outlets saw a 7% spike in numbers, a 17% jump in turnover, and a 10% escalation in the average purchase to 461 rubles.
However, the industry's still face staffin' issues. Ventra Go!, a digital flexible employment platform, has identified cashiers, waiters, bakers, and administrators as the scarcest personnel in catering networks, with temporary workers lining up to fill spots as waiters, laborers, and promoters.
Oh, and if you're curious, DK.RU also reported that the average check in Russian restaurants jumped by a mouthwatering 19.5% compared to the year before in 2025.
On a final note, remember that we're talkin' 'bout proposed changes here. As of now, there's no official VAT rate hike for catering establishments in Russia. The government seems to be more focused on extending exemptions and tax breaks for the hospitality sector.
Interesting Tidbit: In case you were wonderin', a uniform, across-the-board VAT rate reduction for catering establishments could potentially boost the federal budget's coffers by broadening the VAT base for these businesses, but the current policy leans towards offering more exemptions rather than higher rates[2].
Finance ministries are considering reducing the Value Added Tax (VAT) rate for the catering industry, which could potentially boost the federal budget's coffers by broadening the VAT base for these businesses. The proposal, if implemented, might lead to a uniform 3% VAT rate for businesses in the catering sector.
