Zero VAT on breeding products has a positive impact on the development of the Russian dairy industry - Elena Lobantsova
- I believe that the extension of the exemption from value added tax (VAT) for breeding livestock products is very important for the industry, because now there is a large stage of modernization in the entire Russian agricultural complex, which began 5-6 years ago and has not reached its apogee yet. In addition, all large holdings buy cattle. Therefore, zero VAT in the economy is a very good tax optimization,’ the expert said.
She noted that the UDC, which has the status of a breeding reproducer, is obliged to sell 10% of the breeding stock of livestock annually, and zero VAT is to minimize the tax base for such a producer.
– If we say, that our industry is actively developing and soon there will be so many young animals for replacement that we will have to conduct an active breeding sale within the country, and, possibly, beyond its borders, then VAT payable is still a tax saving for the enterprise, - believes Elena Lobantsova.
According to the head of the company, the zero VAT rate on the sale of breeding products in the Russian Federation has a positive effect on the active stage of development of the dairy industry in Russia.
We will remind that Russian President Vladimir Putin signed a law extending the exemption from value added tax (VAT) for breeding livestock products. The document was published on Monday on the official portal of legal information. At the same time, the funds from the cancellation of the benefit in the amount of 16.6 billion rubles were previously included in the draft budget revenues for 2021-2023.
The law extends for two years - until December 31, 2022 inclusive - the VAT exemption for sales in the Russian Federation and for importation of breeding cattle, breeding pigs, sheep and rams, goats, horses, poultry or eggs, as well as semen obtained from breeding bulls. This also applies to embryos obtained from breeding cattle, breeding pigs, sheep, goats, and horses.
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