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Russia B2B e-services VAT easement

  • May 12, 2019 | Richard Asquith

Russia is to allow B2B customers of non-resident providers of digital services to withhold VAT payments. This relieves the cash collection and remittance obligation of the provider, although they must remain Russian VAT registered.

Russia imposed B2B VAT registration and collections on foreign providers of e-services at the start of 2019. This departs from almost all other countries’ VAT treatment of B2B digital services. Prior to 2019, the Russian business recorded the transaction with no cash payment. 

The Russian Federal Tax Service is now allowing businesses' customers the option to withhold the VAT, pay to the tax office and then recover the payment as a deduction in their next VAT return.

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. 

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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