The Ministry of Agriculture suggests expanding the list of agricultural crops eligible for reduced VAT of 10%, including vegetables, fruit trees, and potatoes.

The Ministry of Agriculture of Russia proposes to expand the list of agricultural crops whose seeds are subject to a reduced value-added tax (VAT) rate of 10%. The relevant draft government decree was published on the portal of draft regulatory legal acts. The proposed changes relate to the previous cabinet decree of June 2024. It is expected that the new decree will enter into force on the day following its official publication and will be valid until the end of 2029.

The original government decree of June 5, 2024, No. 1414-r approves the list of codes for treated seeds of corn and sunflower for sowing, which are subject to a 10% VAT rate upon sale and importation into Russia. The Ministry of Agriculture proposes to amend the document by replacing the words "sunflower and corn" with "agricultural crops" and to expand the list of corresponding codes. The updated list now includes seeds of winter and spring wheat, rapeseed, barley, including brewing barley, rye, oats, sorghum, millet, buckwheat, beans, peas, soybeans, flax, rapeseed, potatoes, vegetables, sugar beets, fruit crops, forage crops, and other agricultural crops in general.

The explanatory note to the document states that "the proposed amendment will help maintain the reduced 10% VAT rate on the sale of seeds of agricultural crops to preserve the growth of domestic breeding and increase independence from imports in the seed sector." The preferential VAT rate will be applicable from August 8, 2024, to December 31, 2029, inclusive.