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Russia confirms international transport nil rated for VAT

  • VAT
  • 29 July 2014 | Richard Asquith

Russia confirms international transport nil rated for VAT

The Russian tax authorities have confirmed that the provision of international transport services are subject to nil rate VAT. This brings it into line with the European Union VAT Directive.

The Federal Tax Service confirmed the Value Added Tax treatment in Letter GD 4-3/1194. It clarifies that if the place of destination of the goods are outside of the Russian Federation, that it is outside the scope of Russian VAT. However, transporters may still recover any input VAT suffered in connection with the transport service.


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.