VAT for e-services

Who is a taxable person?

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").

Tax base

Service cost including tax. The tax base will be determined by a foreign organization as the cost of services, taking into account the amount of tax, calculated on the basis of actual sales prices (clause 2 of article 174.2 of the Tax Code of the Russian Federation).

Taxable period. Tax return

A quarter of a year. VAT returns are to be filed by the 25th of the quarter following the fiscal period.

Tax rate

16,67%

Tax payment

VAT payments are due by the 25th day of the quarter following the reporting period. The VAT due must be remitted in Russian currency.

What we offer

01

Tax registration

02

Filing VAT returns

03

Participation in the tax audit

04

VAT payment to the tax authorities

Russia

Belarus

Kazakhstan

Ukraine

Tajikistan

Uzbekistan

Pricing Plans

VAT registration

300 EUR

 VAT registration
* Tranlation cost paid additionally

Vat compliance

250 eur

 VAT return filing and submission (all VAT and currencies are calculated under Markprior's form

400 eur

 VAT return filing and submission (all VAT and currencies are not calculated under Markprior's form

150 eur

 NIL VAT return

Vat payment

50 eur

 VAT payment ( if VAT return was filed by Markprior)

150 eur

 VAT payment ( if VAT return was filed by client)

100 eur

 bank comission (swift)

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FAQ

Who pays VAT related to the delivery of e-services to Russian consumers?

VAT is calculated and paid by a foreign entity (on-line service provider, intermediary) regardless of who is the consumer of such electronic services – an individual or the Russian legal entity or individual entrepreneurs (B2C, B2B). Russian companies will not pay VAT under the reverse-charge VAT mechanism.

How do I know if my company is required to register with Russian tax authorities?

The list of taxable services is established by article 174.2 of the Tax Code of the Russian Federation. There are charge streaming music, films, gaming services, domain names, hosting, website, and webpage support, etc. in this schedule.

How often do I need to report to the Russian tax authorities?

The reporting is done quarterly . Tax returns must be filed and taxes must be paid no later than 25th of the month following the end of a reporting quarter.