It is proposed to extend the validity of the VAT exemption for agricultural producers

A draft law has been submitted to the State Duma providing for amendments to tax legislation in terms of extending the VAT exemption period for certain types of transactions. It is assumed that the changes will come into force from the date of the official publication of the relevant law.

Thus, it is proposed to extend until December 31, 2025 the exemption from VAT in respect of operations for the sale (transfer for own needs) of breeding animals, birds and fish, as well as the import into the territory of the Russian Federation and other territories under its jurisdiction of the above products. Currently, it is indicated that the validity of such a benefit expires on December 31, 2022 (subparagraph 35, paragraph 3, article 149, paragraph 19, article 150 of the Tax Code). Recall that the exemption for imported products is applied subject to the submission to the customs authority of a permit issued in accordance with the Federal Law of August 3, 1995 No. 123-FZ "On livestock breeding", in the approved form (clause 19, article 150 of the Tax Code of the Russian Federation ).

According to the explanatory note to the bill, such amendments will reduce the financial burden on agricultural producers. The currently applied benefit, established in 2016, made it possible to create conditions for improving the quality indicators of our own breeding base of genetic resources, and also ensured the activities of agricultural enterprises to organize uninterrupted work in the production of milk, edible eggs and meat.