State Duma passes bill on zero VAT for ship repair yards
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Zero VAT is set for ship repair yards allocating at least 20% of their revenues for the development
The State Duma of the Russian Federation at its plenary meeting held on 20 June 2023, passed in the second and third reading a bill on setting a zero VAT rate for ship repair companies, according to the State Duma publication.
Amendments introduced into Part 2 of the Tax Code foresee a zero VAT rate for ship repair yards engaged in dock and yard repair of ships if they allocate at least 20% of revenues for the development throughout a 7-year period.
As of today, zero VAT is applied to services (including ship repair) covering sea-going vessels, inland navigation vessels and vessels of mixed sea/river class and provided in ports as well as pilotage, classification and certification services. VAT of 20% is applied to ship repair conducted in docks and at shipyards and repair of vessels that are not decommissioned and placed at the berths of shipyards, not ports.
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