The Ministry of Finance proposed to amend Article 149 of the Russian Tax Code, which regulates the use of a preferential VAT rate. In order not to pay tax for medical devices, you must provide a registration certificate to the Federal Tax Service.
The use of benefits for products with accessories is possible only when selling a complete set that includes a medical device with all its spare parts and accessories. Discount will not apply if accessories are sold separately from the product.
Other conditions for the application of benefits will be developed and designated by the Government of the Russian Federation in a separate document.
The measure is aimed at equalizing the rights of Russian and foreign manufacturers of medical equipment. By supplying their products to the territory of the Russian Federation, foreign manufacturers are exempt from paying VAT. At the same time, domestic manufacturers pay the value added tax in full when purchasing components and spare parts for the assembly of equipment. Thus, the final cost of domestic equipment increases, which negatively affects the conditions for competition with products imported into the territory of the Russian Federation.
To solve this problem, last year the Government of the Russian Federation approved a resolution according to which the list of medical devices that are not subject to VAT will be reviewed annually. So, in December last year, the last amendments were made, after which funds for self-service and care for the disabled were exempted from VAT.