From January 1, 2019, any foreign company supplying electronic services used in the Russian Federation is obliged to collect Russian VAT, regardless of whether the buyer of services is a Russian individual or a Russian company.
Accordingly, and based on clause 4.6 of Article 83 of the Russian Tax Code, any non-established foreign company supplying electronic services to Russian businesses must register with the Russian tax authority.
- Note!
Starting 1 January 2021 rules on licensing agreements no longer apply. VAT exemption will no longer be available to software held by foreign businesses belonging to or essentially controlled by international businesses. The disposal of exclusive and non-exclusive rights to computer software and databases is exempt from VAT if software or databases are included in the Russian National Software Register (the "Software Register").