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Government proposes lifting VAT exemptions on bank card transactions
The Russian Government has submitted a bill to the State Duma on lifting the value-added tax (VAT) exemptions for transactions related to bank card services, as well as for acquiring and processing services. The document has been included in the Duma's database.
Currently, the Tax Code exempts bank card servicing transactions and operations of technological interaction between payment parties from VAT. As follows from the explanatory note, if the amendments are adopted, the exemption will only apply to basic banking services—opening and maintaining accounts for individuals and organizations.
The VAT exemption for bank card transactions was introduced on January 1, 2006, to encourage cashless payments. This exempted market participants (banks, payment systems, and processing centers) from VAT, reducing the cost of servicing transactions. In Russia, processing is handled by banks and specialized centers, such as the National Payment Card System (NSPK).
In 2026, authorities expect treasury revenue from VAT to grow by almost 3 trillion rubles (+17.1%) to reach 17.51 trillion rubles, up from 14.51 trillion rubles projected for the current year.