In Russia, products with milk fat substitutes may be removed from preferential VAT treatment.

The Ministry of Agriculture of Russia has prepared a draft government resolution proposing to adjust the list of food products subject to value-added tax (VAT) at the reduced rate of 10%. The amendments provide that the reduced rate will not apply to producers and importers of dairy products with milk fat substitutes. In particular, it is proposed to exclude from the list spreads, cream-vegetable mixtures, dairy beverages, curd and sour cream products, desserts, condensed milk, and ice cream made with the addition of vegetable fats. For such products, it is planned to establish a standard VAT rate of 20%. The benefit, however, is retained for natural dairy products and beverages without milk fat substitutes. The list also includes clarified product codes according to current classifiers that distinguish between natural and combined products. In addition, the draft provides for bringing ...