Major changes — the tax reform will affect about 16,100 entrepreneurs in Tatarstan.

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       Tax reform will affect around 16.1 thousand entrepreneurs in Tatarstan

      

      

      

      

      

      

      Tax reform will affect around 16.1 thousand entrepreneurs in Tatarstan (photo: pxhere.com)

      

      

      

      

      

      

      

      

      

      

      

       Companies providing freight transportation, construction or entertainment services may find themselves at risk after the tax increase. The authorities of Tatarstan propose to exempt entrepreneurs from fines for one year when dealing with VAT under the simplified tax system.

      

       The reform, initiated by the Russian Ministry of Finance on September 24, provides for two key changes: raising VAT from 20% to 22% from 2026 and lowering the threshold for applying the simplified tax system (USN) from 60 million to 10 million rubles of annual revenue. The State Duma passed the bill in the third reading. The authorities of Tatarstan reacted to the planned changes. The decision to increase VAT from 20% to 22% in 2026 may affect the activities of 16.1 thousand Tatarstan entrepreneurs. This forecast follows from a statement by the republic’s Minister of Economy, Midhat Shagiakhmetov, made at parliamentary hearings on the RT budget project. “As soon as this issue was announced, we began substantive work with our colleagues from business associations, the Chamber of Commerce and Industry of the Republic of Tatarstan, and the Federal Tax Service for Tatarstan,” Shagiakhmetov said. According to him, many entrepreneurs will face difficulties in preparing reports, which may lead to late filing of documents.Support for businessSpecial attention is being paid to mitigating the consequences of the transition. Earlier, the head of Tatarstan, Rustam Minnikhanov, appealed to the deputy head of the Presidential Administration of the Russian Federation, Maxim Oreshkin, asking not to apply punitive sanctions in the first year of enterprises’ transition to the general tax system. Such a decision, experts noted, could help businesses adapt to the new conditions.Risks and consequencesAnalysts warn of possible negative scenarios. As Sergey Matyushenkov, a partner at the consulting company Stream, noted at the 4th Kazan International Legal Forum, the changes could provoke a growth in shadow schemes to avoid taxes, writes RBC. “There will definitely be an increase in going underground in small and medium-sized businesses,” he warns. In his view, businesses may begin to close en masse and reopen with a new economic model that already contains increased tax risks.In addition, as Kommersant writes, the VAT increase may negatively affect industries associated with expensive goods (automobiles, construction, retail, entertainment) or companies with low levels of profitability. According to the publication, relatively protected may be those who have a zero VAT rate or are engaged in the production or trade of socially significant goods with a preferential VAT rate of 10%.

      

      

      

      

       Arina Mikhaylova

      

      

      

      

      

       Published: 26.11.2025 14:55

       Edited: 26.11.2025 14:55