Russia: Government declares VAT-exempt for non-residents on advertising services
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
- Supply of goods and services transactions within Russia is subject to VAT, as stated in Article 146 of the Tax Code
- 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
