VATLive > Blog > 2015 MOSS > Russia 2017 digital VAT law progresses - Avalara

Russia 2017 digital VAT law progresses


Russia 2017 digital VAT law progresses

The Bill to impose VAT on sales to Russian consumers of electronic services from foreign providers progressed to a third, and final reading in the Parliament. The plan is to implement the VAT law from 1 January 2017.

Highlights of the Bill include:

  • VAT will be levied at 18%
  • Foreign providers will have to register as non-resident tax payers
  • Reporting will be on a quarterly basis
  • The reverse charge will apply to B2B supplies, and thus no VAT due by the foreign provider

Determining the ordinary resident of a customer can be made by referece to:

  • Address of the customer
  • IP address
  • International dialing code
  • Credit card or other payment method address

Fees from electronic services subject to Russian VAT include:

  • Online gaming
  • Online software and automated support
  • Subscriptions to news and other content sites
  • Broadcast TV and radio
  • Online telephony and data services
  • Webhosting
Latest Russian news
Russia VAT rise to 20% Jan 2019
June 15, 2018

The Russian government has approved a VAT rise from 18% to 20% on 1 January 2019. It must next be ratified by the Russian Parliament...
Russia lowers VAT low value consignment relief
April 22, 2018

The Russian Ministry of Finance has proposed lowering the VAT-free threshold for goods imported into the country – ‘low value consignment relief’. From 1 July...
Russia VAT proposals following elections
March 28, 2018

Following the re-election of Russian President Putin, a number of changes to the VAT regime are being proposed to help meet election healthcare and infrastructure...

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.