Russia operates a value-added tax (VAT) system known locally as Nalog na dobavlennuyu stoimost (NDS). Russia’s VAT framework is based on domestic legislation, although it follows general international VAT/GST principles. Russia is a member of the Eurasian Economic Union (EAEU), which influences VAT treatment for cross-border trade within member states.
Russian VAT is governed primarily by the Tax Code of the Russian Federation (Part II, Chapter 21) and related regulations. VAT is administered by the Federal Tax Service (Federalnaya nalogovaya sluzhba – FNS). The FNS is responsible for issuing guidance, processing VAT registrations and returns, overseeing electronic reporting systems, and enforcing VAT compliance in Russia.
Businesses carrying out taxable activities in Russia — whether resident or nonresident — must comply with Russian VAT obligations. This includes VAT registration where required, applying the correct VAT rates, issuing VAT-compliant invoices (including electronic VAT invoices where applicable), maintaining appropriate accounting records, and filing periodic VAT returns in accordance with Russian VAT rules.
