VAT exemption for sales and import of airplanes and aero engines

The law on tax incentives for civil aviation development was passed in the third and final reading.

Since January 1, 2020 VAT exemption will also be granted for import of spare parts and components intended for construction, repair and upgrade of civil aircraft in the territory of Russia.

Value added tax (VAT) is cancelled for civil airplanes and helicopters imported into the country to be registered in the state civil aircraft register.

Besides, VAT is cancelled for works and services for construction of airplanes and aircraft leasing, and for sea-borne craft registered in the Russian Maritime Register of Shipping.

Zero tax rate is also specified for import of aero engines and spare parts used to repair and upgrade civil airplanes.

VAT exemption for civil aircraft registered in the state register of a foreign country, provided that a copy of a certificate of its registration in the register is submitted to a customs authority in accordance with an international treaty of the Russian Federation, is valid until January 1, 2023.

Source: http://duma.gov.ru

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