Medvedev instructed the Ministry of Finance to maintain a zero VAT rate for air transportation to Crimea

The Russian Prime Minister Dmitry Medvedev has instructed the Ministry of Finance to maintain a zero rate of VAT on domestic air transportation of passengers to/from the Crimea and Sevastopol, the site of the Russian government says.

"Russian Ministry of Finance has to preserve tax rate of 0% for value added tax in the implementation of services for domestic air transport of passengers and luggage, if the point of departure or arrival is situated in the territory of the Republic of Crimea and Sevastopol," the order of the Prime Minister said.

In April this year, the Russian President Vladimir Putin signed a law providing the reduction of value added tax on domestic air travel from 18 to 10% for the period from 1 July 2015 to 31 December 2017. Thus from June 1, 2014 air transportation of passengers and luggage to the Crimea and Sevastopol are exempt from VAT for a year.