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Belarus Publishes Decree Reducing VAT Rate for Certain Foodstuffs and Other Changes — Orbitax Tax News & Alerts

Belarus has published Decree No. 285 of 22 July 2021, which contains various measures. Some of the main measures concern VAT, including the reversal of the VAT rate increase from 10% to 20% for certain foodstuffs and goods for children imported and sold in Belarus, which generally applied from 1 February 2021 following a transitional period. With Decree No. 285, the VAT rate of 10% is set for specified products for babies and young children, including biscuits, prepared foods, fruits, nuts, fruit juices, and certain others. The change is effective from 1 August 2021.

Another important measure concerns individuals, including that when determining the tax base for personal income tax purposes, insurance compensation paid to individuals under voluntary life and other pension insurance policies executed before 1 January 2021 are exempt from individual income tax. This applies retroactively from 1 January 2021.