Russia e-services VAT bill

Mon 7th Mar 2016

The Russian parliament, the Duma, passed the first reading of a bill to introduce 18% VAT on foreign providers of digital services to Russian consumers. This will include an obligation for foreign providers to register with the Russian authorities, and file regular returns.

The bill shifts the place of supply of electronic supplies to Russian consumers to the location of the consumer – similar to the EU 2015 MOSS changes. Services included within the new regime include:

  • Web hosting
  • Provision of online e-books, downloads/streaming music, videos and online gaming
  • Membership charges and fees to online websites
  • Sales of ad services on websites and search engines
  • Broadcast of television and radio programmes
  • Access to trading platforms, including marketplaces and share trading

Supplies to VAT registered entities will be subject to the reverse charge.