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    The Ministry of Finance will extend for a year preferential VAT for flights via Moscow

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    The reduced rate of value added tax of 10% (standard VAT rate is 20%) for domestic flights via the airports of the Moscow air hub will be extended for another year, until December 31, 2023 of the year. This is stated in a letter from the Director of the Tax Policy Department of the Ministry of Finance, Denis Volkov, to the Association of Air Transport Operators (AEVT), which unites the largest Russian airlines (Izvestia has).

    “Application of tax VAT rates of 10% for the provision of services for domestic air transportation and baggage for routes whose points of departure or destination are located on the territory of the city of Moscow and the Moscow Region will be extended until December 31, 2023,” the letter says.

    For the first time, the authorities introduced a reduced VAT rate for domestic flights via Moscow in 2015 to support the aviation industry and extended it several times. The AEVT said that the reduced rate of 10% has a positive impact on the availability of air transportation for the population and the development of the industry.

    The association emphasized that such support is especially important in the context of the high cost of aviation kerosene, airport services and multi-billion dollar operating losses of Russian airlines.

    VAT rate.

    President of the Russian Federation Vladimir Putin on September 7 at the plenary session of the Eastern Economic Forum announced that the air transportation industry in Russia would undergo a “systemic re-equipment”. He clarified that domestic airlines have formed the largest package of orders in modern history, for about 500 Russian-made long-haul aircraft.

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