Russian government has filed a bill introducing tax free system in the country to the State Duma, the official statement reads on Tuesday.

According to the government, the bill seeks to allow citizens of countries outside the Eurasian Economic Union to receive compensations for value-added tax (VAT) paid in Russia.

The bill also envisages that retailers are to be granted the right to deduct VAT pertaining to the goods sold to foreign citizens from the total amounts of VAT payable. The bill establishes 0% VAT rate for organizations providing VAT compensation services to foreign citizens.

On June 13, the bill was approved by the governmental legislative commission.