Russia Imposes VAT on Foreign Crypto Mining Services

Russian Finance Ministry Enforces New VAT Policies

The Russian Ministry of Finance has enacted new VAT charges, impacting companies leasing equipment to foreign miners. The aim is to clarify taxation procedures and ensure compliance within the crypto industry. Leasing rules changes will now require foreign-facing operators to pay VAT.

The Federal Tax Service (FTS) manages crypto miner registrations. As of April 2, 2025, 116 Mining Infrastructure Operators were on record. Tax deductions on leased equipment are no longer permissible, tightening regulations.

“The intention is to clarify taxation procedures for leasing crypto mining equipment and establish rules for companies providing computing power to non-Russian clients.” — Russian Ministry of Finance

Foreign Crypto Miners Face Higher Operational Costs

The immediate consequences include higher costs for foreign companies utilizing Russian crypto services. Meanwhile, local operators face increased registration burdens and accounting duties with these updated tax directives.

Financially, the industry may see shrinking margins as operational expenses rise. Politically, the tightening tax regime could alter Russia’s appeal to international crypto ventures seeking low-cost mining solutions.

Past Policies Shaped New Crypto Tax Laws

Past policies didn’t impose VAT on crypto mining equipment leasing, as introduced in January 2025. President Putin’s 2024 law classified cryptocurrencies, paving the way for systemic tax integration.

Experts anticipate that compliance challenges could hinder business initially but adapt over time, paralleling historical trends in global tax adjustment scenarios.