Russian President Vladimir Putin recently approved the introduction of a new sales tax in order to shore up regional budgets. As considered by the Ministry of Finance in early July, Russia's 12 economic regions will be granted the power to implement the sales tax at a rate of up to 3%.
The sales tax is in addition to the value added tax rate of 18% (10% reduced rate), but unlike VAT, there will be no right to deduct or reclaim the new sales tax. Basic foodstuffs and services, along with chi…