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Russia 2017 digital VAT law progresses

  • Jun 10, 2016 | Richard Asquith

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

Need help with your Russian VAT compliance?



Researching Russian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 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.