Import of breeding stock to Russia will be exempted from VAT
Import of breeding stock to Russia will be exempted from value added tax. State Duma deputies accepted a relevant draft law during the second reading.
Today the VAT amounts to 10%. The purchaser must pay it in the process of custom processing. The one-time payment of the tax is a significant spending for the agricultural producer; it impacts the financial health of the company. Average price for a heifer is about €2,500 plus €250 VAT. If a company buys 100 cows it needs to pay additionally more than 1 million rubles. The law is destined to relieve the farmers’ cost loading.