Russian VAT returns

Once registered for value-added tax (VAT) in Russia, businesses must declare all taxable transactions and remit any VAT due to the Federal Tax Service (Federalnaya nalogovaya sluzhba – FNS).

Russian VAT returns are generally filed on a quarterly basis.

• Quarterly filing is the standard requirement for most VAT-registered businesses.
• There is no standard monthly VAT return regime, although VAT liabilities may be paid in installments.

The Federal Tax Service assigns filing obligations at the time of VAT registration and monitors compliance through its electronic reporting systems.

VAT returns must generally be submitted by the 25th day of the month following the end of the reporting quarter.

Payments of any VAT due are typically made in three equal installments, due by the 25th day of each of the three months following the reporting quarter.

Russia uses standardised VAT return forms submitted electronically through the FNS online reporting system.

VAT-registered businesses in Russia must maintain comprehensive VAT records, including:

• Sales and purchase invoices (including electronic invoices)
• VAT ledgers (sales and purchase books)
• Import and export documentation
• Accounting records and journals supporting VAT calculations

Records must generally be retained for at least four years and must be made available for inspection by the Federal Tax Service upon request.

VAT payments are due according to the installment schedule (generally the 25th day of each month following the reporting quarter).

Late payments may result in interest charges, administrative penalties, and additional sanctions under Russian VAT law.

Input VAT may generally be reclaimed on goods and services used for taxable business activities, including:

• Goods purchased for resale
• Capital assets and business equipment
• Professional services, utilities, and overhead costs
• Import VAT on goods used in taxable supplies

Input VAT is only deductible where supported by valid VAT invoices (schet-faktura) and proper documentation.

Input VAT is not deductible on private or non-business expenses. Specific restrictions apply to certain costs, such as entertainment expenses and items not directly related to taxable activities.

All Russian VAT returns must be submitted electronically through the Federal Tax Service’s reporting system using the taxpayer’s secure digital signature.

VAT payments are typically made via bank transfer to the Russian Treasury account designated by the tax authorities.

Penalties may apply for VAT noncompliance, including: 

• Late filing penalties for overdue VAT returns
• Interest on late VAT payments
• Penalties for incorrect, incomplete, or misleading VAT returns
• Additional sanctions in cases of repeated noncompliance or tax evasion

The Federal Tax Service publishes guidance on applicable penalty rates and enforcement procedures, which may change over time.

If input VAT exceeds output VAT for a given reporting period, the resulting VAT credit may be:

• Carried forward to offset future VAT liabilities, or
• Refunded by the Federal Tax Service, subject to statutory conditions and audit review.

VAT refunds are typically subject to detailed verification procedures and may involve desk or field audits. Processing times can vary depending on the taxpayer’s compliance profile and the complexity of the claim.