Russia foreign digital services VAT
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
- Streaming video and music
VAT returns will be monthly, and come due by the 25th of the month following the quarter end.
B2B service provision will remain zero-rated under the reverse charge mechanism.