Russia ruling on VAT invoices
- Jan 23, 2013 | Richard Asquith
It is common practice in Russia for suppliers of goods to grant their customers with large discounts/incentives after the sale to encourage customers to pay their invoices early, or buy large quantities in the future. This creates a problem for the Russian VAT declarations for the seller (over declared VAT due or output), and the buyer (over declared VAT deduction or input).
The Russian Supreme Arbitration Court has now confirmed new Russian VAT compliance guidance from the tax authorities on how to record and report these transactions. They were insisting on separate correction invoices for each product sold. This has been creating an extremely large volume of work large manufacturers who are forced into large scale re-invoicing.
The ruling on 11 January 2013 means the re-invoicing burden remains in place.
