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Russia

Russia

Explore the requirements and rules that apply to electronically supplied services in Russia.

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Red cathedral Russia

Supplies of e-services to consumers (B2C)

Is a non-resident supplier of e-services to consumers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

Yes


If there is no current requirement, is there any anticipated change to that position?

Not applicable, requirement is already in place.

Is an invoice compliant with the VAT/GST law in the customer's country required?

No

Supplies of e-services to businesses (B2B)

Is a non-resident supplier of e-services to business customers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

No

If there is no current requirement, is there any anticipated change to that position?

No

If there is not a requirement for the non-resident supplier to register for VAT/GST, are the services subject to VAT/GST withholding by the customer?

Yes and withheld VAT is recoverable by the customer if necessary conditions of VAT recovery are met.

Where there is a current or future requirement for non-resident suppliers to register and/or account for local VAT/GST or a customer VAT withholding requirement:

When did/will that requirement come into effect?

1 January 2017

What is the applicable annual turnover threshold (in local currency) for that requirement to apply?

There is no minimum threshold

Is simplified or standard registration required?

Simplified, non-resident vendors that supply electronically supplied services to Russian individuals or intermediary companies with respect to such services are liable to become tax registered in Russia and pay VAT. Non-resident vendors have no right to recover input VAT unless they create a presence in Russia.

Does the requirement apply to all e-services?

Yes, similar requirements apply irrespective of the type of electronic service.

For further information please contact:

Evgenia Wolfus
Partner, Msk / Tax and Legal / International Tax
T +7 495 937 4444 x12651
E EWolfus@kpmg.ru
 

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