Russian VAT

Value Added Tax was introduced into Russia in 1992. It is administered by the Federal Tax Service in accordance with Chapter 21 of the Second Part of the Tax Code.

For foreign companies making taxable supplies in Russia, there may be a statutory obligation to register as a taxpayer.

There is no separate registration for VAT purposes in Russia, however the general registration as a taxpayer covers VAT. Once registered, non-resident traders must comply with local filing rules (see below).

Typical situations requiring a Russian VAT registration include:

• Where goods are delivered within Russia;
• Where goods are imported into Russia;
• Export of goods from Russia;
• Supply of services where the place of supply is Russia.

There is no threshold for registration in Russia.

However there is no requirement to register for VAT, and taxes in general, if the period of business activities performed in Russia does not exceed 30 days. Otherwise it is compulsory to register as a taxpayer in Russia.

A foreign company may register for VAT in Russia without the requirement to form a local company, and they must register in their own name – that is, a Fiscal Representative cannot be appointed to sign returns or make payments on a company’s behalf.

A VAT agent can become involved in the payments of VAT - or this can be the customer in certain cases.