Russia: Government declares VAT-exempt for non-residents on advertising services

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Guidance Letter No. SD-4-3/11068 was declared by Russian Ministry of Finance in relation to the VAT Obligations on the advertisement services offered by a Russian Organization to a non-resident.


VAT-exempt for non-residents on advertising services   

  1. Supply of goods and services transactions within Russia is subject to VAT, as stated in Article 146 of the Tax Code
  2. Russia will not be the place of advertising supplies if the buyer of the consumed services operates in a foreign state as stated under Article 148.


Therefore, marketing services are not subject to VAT if non-resident sellers are not operating in Russia.



Source: nalog.gov.ru

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