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Russian PM extends tax-free experiment for one year

On April 10, 2018, Russia began testing a system that allows foreigners to return VAT on purchases made in Russia

GORKI, December 23. /TASS/. Russian Prime Minister Dmitry Medvedev renewed the tax-free experiment for one year and extended it to three more regions.

"I have just signed a new decree, which does not merely extend the term of this pilot project by December 31, 2020, but also makes possible to broaden the geography and the number of participants in this process. Thirteen regions having it in force will be complemented by three more: these are Leningrad, Primorsk and Khabarovsk Regions," Medvedev said.

Referencing of stores to specific address stipulated in the prior version of the decree is eliminated, the Prime Minister said. The retail trade of the region carried by Russian legal entities can now take part in the project and not merely entities registered in specific buildings or in specific streets.

On April 10, 2018, Russia began testing a system that allows foreigners to return VAT on purchases made in Russia. The first cities in which foreigners were able to use the tax free system were Moscow and St. Petersburg. Then the list included the cities hosting the 2018 FIFA World Cup.

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