The largest Russian food industry associations concerned about possible changes in taxation

The largest Russian food industry associations concerned about possible changes in taxation from January 1, 2015.

What happened in January

change Russian Classification of economic activities may result in the taxation of food products in the VAT rate of 18% instead of the current rate of 10%.

In compliance with the order Rosstandart on January 31, 2014 № 14 from January 1 st canceled National Classification of products (OKP) OK 005-93, in return for which introduced National Classification of products by economic activity (2 JECFA) 034-2014 OK (CPA 2008). However, codes of food commodities in accordance with OCP 005-93 used in determining the list of goods subject to value added tax at a tax rate of 10%. Respective lists approved by the Decree of the Government of the Russian Federation of December 31, 2004 № 908 "On approval of lists of codes of food products and goods for children, subject to value added tax at a tax rate of 10 percent." Currently, domestic food products belonging to the privileged categories confirmed following classification codes OKP 005-93. Thus, the cancellation of the Russian Classification OKP 005-93 creates uncertainty for the application of the Tax Code and requires changes to all national, industry standards and specifications of manufacturers of goods.

Will appeal to Igor Shuvalov to expedite amendments to the Decree of the Government of the Russian Federation of December 31, 2004 number 908 and extend the transition period for the introduction of National Classification of products by economic activity (JECFA 2) OK 034-2014 (CPA 2008) until December 31, 2015 in order to combine the transition periods Russian classifiers and technical regulations of the Customs Union on meat, dairy and fish products.

Source: Meatifo.ru