For ship repair enterprises the VAT rate has been set at 0% in Russia

Russian President Vladimir Putin signed a law establishing a zero value-added tax (VAT) rate for domestic ship repair enterprises when they carry out work after the conclusion of an investment agreement on capacity development.

In particular, the investment agreement is concluded by the ship repair enterprise with the Ministry of Industry and Trade and the Ministry of Finance. It should contain a list of measures for the development and modernization of production capacities. The investment agreement must be concluded no later than December 31, 2024, it is valid for seven consecutive calendar years. The law provides that in the event of termination of such an agreement, the enterprise must pay VAT at a rate of 20% for the entire calendar year in which the agreement was terminated.