Russia VAT Update

These are the latest updates and news regarding VAT in Russia. In this post we comment about Russian rise of VAT rates and changes in B2B VAT.

— Following government approval, it has been confirmed that the standard rate of VAT in Russia will rise from 18% to 20% with effect from 1 January 2019.
— The current reduced rate of 10% remains unaffected.
— Currently under Russian law, non-established suppliers of e-services to Russian consumers are required to register for Russian VAT, and account for VAT on periodic VAT returns.
— Presently, VAT is only due upon B2C sales, however it has been confirmed that with effect from 1 January 2019, non-established suppliers must also charge Russian VAT upon B2B supplies of e-services to Russian businesses. Currently this VAT is accounted for by the Russian business customer under the reverse charge.
— Affected businesses should now consider their VAT registration obligations in Russia.

As always we will keep you updated in VAT updates and news around the world.

If you have any comment you can always contact us.

Related services: