New value added tax (VAT) rules with respect to business-to-business (B2B) supplies of e-services provided to Russian customers will be effective under new legislation beginning 1 January 2019.
Under the new VAT rules, there will be new registration and reporting requirements.
The supplier (or the electronic platform) will be solely liable for the VAT, and the corresponding VAT returns will have to be filed quarterly.
There are exemptions from the VAT liability for e-services. For instance, the provision of rights to use software (including electronic games) and databases based on a licensing agreement or on tangible media will be exempt from VAT under this new measure.
For more information, contact a tax professional with the KPMG member firm in Russia:
Anton Kuzminykh | firstname.lastname@example.org
Anton Borisichev | email@example.com
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