Russia 2017 digital VAT law progresses
- 2015 MOSS
- 11 June 2016 | Richard Asquith
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
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