Russia: E-invoicing mandatory from the 1st July 2021

Russia introduces a national traceability system whereby electronic invoices on certain traceable goods are mandatory as of 1 July 2021This 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 recordsFrom 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: 

  • Refrigeration and freezing equipment
  • Monitors and projectors
  • Baby strollers and child safety seats
  • Industrial trucks
  • Washing and drying machines
  • Electronic integrated circuits and elements

What actions should companies take to best prepare for this change? 

To address changes companies could: 

  • Prepare their internal processes and IT systems to support traceability of goods such as adding the BRN number on invoices and preparing for filing reports accordingly to the requirements set by the Russian taauthorities. 
  • Switch to an electronic document flow in terms of issuing and receiving e-invoices.  
  • Prepare for liabilities should tax authorities identify inconsistencies in the reporting of traceable goods during the audit such as by providing VAT invoices or paying due custom payments. 



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