Russian Catering Firms Seek VAT Deferral

Russian catering companies are requesting a delay for first-quarter VAT payments to avoid business collapse. The affected businesses reported annual incomes below 60 million rubles last year. The UPVS management network reported that the inclusion of VAT has impacted rental payments. While the percentage of payments to pickup point owners depends on turnover, the overall payment percentage itself has not changed. Russian catering businesses are seeking to defer Value Added Tax (VAT) payments due to regulatory uncertainty. Industry representatives suggest it is safer to pay the tax now and seek redistribution later rather than waiting for a final decision from tax authorities. Some small establishments may be exempt from new tax laws following recent legislative signings. The exact timeline for tax authority decisions remains unknown, ranging from days to weeks. Small and medium-sized businesses, specifically citing the example of Cafe Picardnya Mashenka, are struggling to adapt to falling demand. A new bill signed by Vladimir Putin addresses tax burdens for entrepreneurs transitioning to the Unified Tax on Imputed Income (MDF) format. The cafe chain Pikarnya Mashenka is cited as a prominent example of a business facing these pressures. The requested measures aim to provide relief as businesses fail to restructure quickly enough.