500 companies will take part in the pilot project to abolish VAT for catering

A pilot project to abolish value added tax (VAT) for public catering may begin in the fall and last for a year, said First Deputy Prime Minister Andrei Belousov. According to him, 500 companies that have already been selected by the Federal Tax Service will take part in it. He said that a reduction in the rate of insurance premiums is also being discussed.

“They are not only discussing VAT, they are also discussing a reduction in rates and insurance premiums. 500 companies, they exist in principle, have been selected by the Federal Tax Service. I think in the fall. All the normative documents should come out there, I can’t tell you for sure, “Mr. Belousov told reporters on the sidelines of SPIEF-2021 (quoted by TASS).

Finance Minister Anton Siluanov believes that the abolition of VAT for catering enterprises will whitewash business. “What’s going on today? Public catering enterprises, as a rule, chain restaurants, operate in the gray sector … We will conduct an experiment … and see how much they will get rid of their salaries, ”Mr. Siluanov told reporters. He noted that the state, “in fact,” does not receive VAT, because the business is split up and operates as small enterprises. “We will receive additional taxes in the form of income tax, insurance premiums, and in general everyone should be happy. Therefore, such an experiment will be carried out, ”the minister added.

Today, June 4, at SPIEF-2021, President Vladimir Putin proposed exempting catering establishments from value added tax (VAT) if the company’s revenue does not exceed RUB 2 billion. According to the president, the business will retain the right to pay a reduced rate of insurance premiums of 15%. Enterprises with up to 1.5 thousand employees will be able to take advantage of the privilege.

About the president’s proposal – in the material of “Kommersant” “Privileges are brought to restaurants”.