The project of the Ministry of Finance on zeroing VAT for ship repair plants has been approved by the Government of Russia. The condition for zeroing the tax will be for enterprises to invest at least 20% of their revenue in their own development for seven years.
"The government has approved the draft law of the Ministry of Finance of Russia on zeroing VAT on ship repair work," the Ministry of Finance reported in Telegram.
As Prime Minister Mikhail Mishustin stated during today's government meeting, the fiscal benefit will apply only to those enterprises that are engaged in the restoration of ships in docks and shipyards. "As a result, businesses will be able to increase their investment opportunities at the expense of the saved funds, invest more in long—term projects," the prime minister believes (quoted by Interfax).
In January, Kommersant got acquainted with this bill. The document assumes that an enterprise applying for VAT zeroing is obliged to conclude an investment agreement with the Ministry of Industry and Trade and the Ministry of Finance on the development of its capacities for a period of seven years. In case of termination of the contract, VAT for previous periods will be accrued.
Read more about the bill in the material "Kommersant" "Ship repair will save on taxes."