Russia foreign digital services VAT

Sun 26th Jun 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 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.