Finance Ministry prepares for negotiations on lowering VAT for public food items to 3%.
The Whacky Idea of Cutting Catering VAT to a Mere 3% Floated by a Restaurant Tycoon
Mikhail Goncharov, the restaurant emperor of Teremok, threw a shockwave during a powwow with Vladimir Putin and Delovaya Rossiya members, suggesting a slash in catering VAT to a measly 3%. According to the news Wire, Interfax, this wacky idea could be the next big thing for Russia's hospitality industry.
As it stands, eateries that evade the VAT exemption (in effect since 2022) take a whopping 20% hit on their income. However, they have the gall to wrangle a tax credit and usually end up paying a pittance of 3-4% VAT - a situation that often leads to a tax war. Goncharov reckons streamlining the tax venue and wiping out the 17-fold difference might spare the federal budget a significant smack in the wallet.
Speaking of smacks, our website previously reported whispers of VAT relief for large grub businesses. Currently, establishments raking in less than 2 billion rubles reap the benefits of VAT exemption and half-price insurance dues (15% instead of 30%). But businesses with deep pockets are playing second fiddle to the single-digit brigade. Some chaps within the Ministry of Finance's lair are keen to hoist the VAT exemption limit to 3 billion rubles or pick a 2-5% VAT rate that won't be tax-deductible, like a lemon twist in a boozy cocktail.
Anton Siluanov, the Ministry of Finance's chief, confirmed the rumor mill, mentioning that they've slipped the legislators a draft bill to mull over. The 2-billion to 3-billion rubles upgrade is apparently on its second leg in the Russian Duma.
Siluanov, himself a number-cruncher, teased a 3% VAT rate, without a pesky deduction, as a plausible concept - one that needs some brainy calculations before making the final checkmate move. He added that they were game to discuss more decent VAT rates, something like 3-4%, but with plenty of calculations moonwalking in the background.
Flashback to our website, the Ministry of Industry and Trade sets its sights on ramping up Russian cuisine within the nation. The department plans to create a dream team who'll cook up a recipe for a standard Russian cuisine. Currently, there's no such term on the books in Russia, but national dishes are a heritage treasure that breathes life into Russian culture.
From May 1 to 11, 2025, the tills of Russian restaurants overflowed with a 57% year-on-year surge in cash. Meanwhile, the number of transactions rose by 43%, and the average bill grew by a respectable 10% to 2,584 rubles. Street food spots also saw a 17% turnover boost and a 10% price spike, with the average purchase tidily totaling 461 rubles.
However, the industry is still reeling from staff shortages. Ventra Go!, the digital labor marketplace, identified the scarcest staff in catering networks as cashiers, waiters, bakers, and administrative staff. The top 3 positions in demand for temp workers were waiters, laborers, and promo folks.
To witness more economic gastronomy, check out our article titled, 2025: The Average Check in Russian Restaurants Soared by 19.5% Compared to the Previous Year.
Businesses in the retail sector, such as restaurants, might find relief with proposed changes in VAT rates, as suggested by Anton Siluanov, the Finance Minister. This could potentially widen the VAT exemption limit to catering businesses raking in up to 3 billion rubles, a move that would align with the government's efforts to promote and standardize Russian cuisine.
