In Russia, Value Added Tax (VAT) was introduced in 1992. The scope of VAT covers the supply of goods, work and services used or performed in the territory of the Russian Federation.
The Authority responsible for VAT is the Ministry of the Russian Federation for Taxes and Levies (Federal Tax Service).
A Standard VAT rate of 20% applies to most goods and services in Russia. A Reduced VAT Rate of 10% applies to food, children’s clothes, books, medical equipment and some services. There is also a Special VAT Rate of 16.67% applicable to e-services.
There is no registration threshold above which registration would be necessary. Companies should register when there is any taxable activity. Nevertheless there is a possibility to request exemption from VAT if the company’s turnover is below RUB 2 million in the proceeding 3 years.
Generally the registration procedure should take only 5 days; however it usually takes longer.
According to article 169 of the Tax Code, the following information should be recorded on an invoice:
Only in case the goods in question are originated from a foreign country:
Our VAT technology platform, Comply helps companies manage their complex, country-specific tax requirements including Russia’s VAT obligations.
Using AI and machine learning, our technology puts your VAT data through over 300 automated VAT rules, checking for errors, and preparing VAT returns for approval and submission. Comply provides a full audit trail for the Russian Tax Authorities.
The basic filing frequency is quarterly. Both submission and payment deadlines falls on the 25th day of the following month after the reporting period.
Submission of the VAT returns should be done electronically through the assigned tax office’s website.
It is not obligatory for any company (either local or foreign) to have a representative at the Russian Tax Authority, because in general each taxable person should be responsible for its tax matters.
Nevertheless it is possible to appoint a Tax Agent or Representative who can act on behalf of the taxable person.
July 2022:VAT rate cut on accommodation services
Contact Taxback International to find out how we can help you with your VAT Compliance requirements.
We fully manage all of your VAT obligations across multiple countries, wherever they arise.
Our VAT Compliance technology delivers full visibility over your historic and current global VAT activities.
Our combination of knowledge-based technology and our in-house VAT experts ensure 100% VAT compliance.