According to the new law adopted by the State Duma of Russia, from 2024, the preferential VAT regime for the sale of investment diamonds will become indefinite.
According to the current legislation, until the end of this year, a zero VAT rate will be applied when banks sell natural diamonds to individuals. In addition, zero VAT applies to the sale of such stones by mining companies to the State Fund, regional funds of precious metals and precious stones, the Central Bank of the Russian Federation and regular banks.
The new law removes the time restriction and makes this benefit permanent starting 2024.
Previously, Galina Danchikova, a member of the State Duma Committee on Budget and Taxes, introduced a separate bill on this topic. As the author explained to Prime news agency, it was done in order to “establish incentive measures for investment diamonds on an ongoing basis.”
The Russian government supported this amendment. To speed up its adoption, the proposed change was included in the tax bill as an amendment to the second reading.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
