Eligible providers can register with the tax authorities via a tax agent or directly through the tax office’s online registration portal.
The VAT registered provider is then required to maintain records of transactions with supporting evidence for identifying the place of taxation as Russia. The VAT calculation should be recorded on a per-transaction basis.
VAT registered providers are required to submit quarterly returns, due by the 25th of the following month. The simplified electronic services VAT returns do not allow for input VAT credits or deductions.
VAT payments must be settled in Russian rubles. This can present problems with regard to foreign bank accounts which may not be able to properly identify the payment to the Russian tax authorities. This means tax payers may wish to appoint a local representative with a treasury function, or open their own Russian bank account.
