Russian Federation

Russia imposes VAT on B2B foreign digital services

December 29th, 2017

From 1 January 2019, Russia will require non-resident providers of digital services to businesses to VAT register in Russia and charge VAT. Russia introduced VAT liabilities on offshore providers of electronic services to consumers in January 2017. For B2B transactions, the reverse charge was applied and the Russian taxpayer was responsible for reporting the VAT with …

Russian Federation

Russian VAT on digital services

November 8th, 2017

Since January 2017 (Federal Law # 244-FZ of 3 July 2016), non-resident providers of electronic services to Russian customers have been required to register for, and charge VAT.  This mirrors similar regimes in the European Union and other countries around the world. Income from services included within the definition of e-services includes: streaming video, music …

Russian Federation

Russia VAT rise to 22% January 2019

May 10th, 2017

The Russian Finance department has confirmed that it intends to raise VAT from 18% to 22% on 1 January 2019.  The rise will help fund an cut to the employees tax rate to 22% from 30%.   The Russian government deficit has widened over the past few years with the decline of oil revenue taxes …

Russian Federation

Russia studies 22% VAT

March 26th, 2017

Russia is considering raising VAT from 18% to 22%. The rise in indirect tax would help fund a cut in employer social security levies from 30% to 22% to help reduce black economy employment.  The change would be implemented in 2019.  However, it appears that the VAT rise would fail to cover the hole left …

Russian Federation

Russia e-services VAT registrations

March 19th, 2017

Following the introduction of VAT on B2C e-services sold by non-residents from 1 January 2017, the Federal Tax Service has confirmed that 28 companies are registered. These include: Airbnb, Alibaba, Apple, Bloomberg, Booking, eBay, Google, Microsoft and Nintendo. VAT in Russia is .

Russian Federation

Russian VAT update

August 20th, 2016

There have been a range of changes to the VAT code in Russia. These include: VAT zero rating on supplies related to preparations for the World Cup in 2018 Goods traded in bonded warehouses may be exempted from VAT VAT import exemption for medical supplies from 1 October 2016 if similar products are not produced …

Russian Federation

Russia foreign digital services VAT

June 26th, 2016

The Russian Parliament has approved this month a new Act to impose 18% VAT on the e-services provided to its consumers by non-resident providers. The new levy will come into effect on 1 January 2017. Income from the provision of the following services will be subject to VAT: Online gaming Hosting of websites E-books Streaming …