Russia: New VAT exemption for companies offering e-services


The Federal Tax Service of Russia informed e-service companies of a change in the Tax Code regarding VAT exemptions that came to force on 1 January 2021.


According to these changes, since 1 January 2020 a VAT exemption will be applied regarding:


  • Transfer of exclusive rights to programs for electronic computers  and databases included in the unified register of Russian programs for electronic computers and databases
  • Rights to use these programs and databases (including updates to them and additional functionalities), including the provision of remote access to them via the data-telecommunication network Internet

If rights being transferred include the opportunity to promote advertisements on the Internet and (or) getting access to such information, to place offers of buying (selling) goods (services, operations), property rights on the Internet, to conduct a search of information on prospective buyers (sellers) and (or) make agreements then services of transferring such rights are not subject to tax exemption, according to article 149 of the Code.


Thus, services of transferring rights to use software, which is not included in the unified register of Russian programs for electronic computers and databases, provided after 1 January 2021, will be taxed according to standard procedures provided in the Code.


At the same time the Inspectorate released a webinar for foreign e-services companies which can be found here: E-services webinar materials



Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!