As a result of the annexation of Crimea by Russia on March 18th, 2014, a decree has been issued to begin the process of transitioning to the Russian VAT Regime. While a full switch to the Russian Tax Code will begin in 2015, changes to VAT are set to begin May 1st, 2014, and include:

• Foodstuffs will switch from the Ukrainian VAT rate of 20% to the Russian rate of 18% or reduced rate of 10% for t…