These are the latest updates and news regarding VAT in Russia. In this post we comment about Russian rise of VAT rates and changes in B2B VAT.
— Following government approval, it has been confirmed that the standard rate of VAT in Russia will rise from 18% to 20% with effect from 1 January 2019.
— The current reduced rate of 10% remains unaffected.
— Currently under Russian law, non-established suppliers of e-services to Russian consumers are required to register for Russian VAT, and account for VAT on periodic VAT returns.
— Presently, VAT is only due upon B2C sales, however it has been confirmed that with effect from 1 January 2019, non-established suppliers must also charge Russian VAT upon B2B supplies of e-services to Russian businesses. Currently this VAT is accounted for by the Russian business customer under the reverse charge.
— Affected businesses should now consider their VAT registration obligations in Russia.
As always we will keep you updated in VAT updates and news around the world.
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