The government plans to stimulate businesses to purchase drone protection equipment and transfer it to the state by exempting these goods and services from VAT. This is stated in the explanatory note to the draft amendments to the Tax Code, submitted to the State Duma.
Essence of the mechanism
It is proposed not to recognize as an object of VAT taxation the gratuitous transfer of goods, performance of works, or provision of services to the Ministry of Defence, Rosgvardiya, FSB, and Ministry of Emergency Situations for the purpose of protection against unmanned aerial vehicles.
The benefit also applies to the provision of food to citizens located in protective structures and basements belonging to the taxpayer, for the purpose of their protection from the use of drones.
When applying this benefit, taxpayers are planned to retain the right to deduct "input" VAT. In addition, the project introduces a new norm allowing not to recognize as an object of VAT taxation the gratuitous transfer to the state treasury of not only immovable but also movable property.