Russia imposes VAT on B2B foreign digital services
- 29 December 2017 | Richard Asquith
From 1 January 2019, Russia will require non-resident providers of digital services to businesses to VAT register in Russia and charge VAT.
Russia introduced VAT liabilities on offshore providers of electronic services to consumers in January 2017. For B2B transactions, the reverse charge was applied and the Russian taxpayer was responsible for reporting the VAT with no cash payment. This simplification is now being removed by Federal Law No 335-FZ.
Russian electronic services 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 or online databases
- Automated, online advertising services
- Cloud or similar online data storage and memory
- Automated domain name-related services
- Excluded: internet access; consulting/advice services provided via email
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