Russia introduces a national traceability system whereby electronic invoices on certain traceable goods are mandatory as of 1 July 2021. This procedure is an execution of Federal Law No. 371-FZ which will amend the Russian Tax Code to support Russia’s aim to fully digitalize its transaction records by 2024.
What changes does the traceability system imply?
The implementation of the national traceability system enables more control over the flow of goods through tracking a batch registration number (BRNs). Taxpayers involved in transactions with traceable goods should include the BRNs on the electronic VAT invoices and inform tax authorities about such transactions by filling VAT returns or related transaction records. From 1 July 2021 invoices for these goods must be electronic, and the buyers of goods subject to traceability must accept invoices in electronic form. The new requirement for mandatory e-invoices for sales of traceable goods doesn’t apply to B2C sales and export of goods.
What type of products are subjected to traceability?
The goods listed as subjected for traceability are:
What actions should companies take to best prepare for this change?
To address changes companies could: