Expansion of VAT refund system

Decree No. 1719 of December 19, 2019. The deadline for the implementation of the pilot project for compensation to individuals – citizens of foreign countries of VAT on the export of goods outside the customs territory of the Eurasian Economic Union was extended until December 31, 2020. The geography of the constituent entities of the Federation – the participants in the pilot project has been expanded at the expense of the Primorsky Territory, Khabarovsk Territory and the Leningrad Region. In addition, in order to ensure the possibility of participation in the pilot project of the largest number of retail organizations, it was established that such organizations can be located throughout the territory of the subject of the Federation – a participant in the pilot project.

In accordance with Federal Law of November 27, 2017 No. 341-ФЗ “On Amending Article 88 of Part One and Chapter 21 of Part Two of the Tax Code of the Russian Federation,” a mechanism was introduced for compensation to citizens of foreign states of the amount of value added tax when exporting goods outside the customs territory of the Eurasian Economic Union.

In order to test the VAT compensation mechanism by Government Decree No. 105 of February 6, 2018, it was decided to implement in 2018 a corresponding pilot project in the republics of Mordovia and Tatarstan, Krasnodar Territory, Volgograd, Kaliningrad, Moscow, Nizhny Novgorod, Rostov, Samara, Sverdlovsk Regions, Moscow and St. Petersburg (hereinafter – the pilot project).

By the Decree of the Government of December 27, 2018 No. 1699 , the implementation period of the pilot project was extended until December 31, 2019. In addition, the list of participants in the pilot project has been expanded. In particular, it includes retail organizations located on the popular shopping streets of the cities of the Moscow Region (Kotelnikov and Khimki), as well as the cities of Yekaterinburg, Moscow and St. Petersburg.

The decree signed by the decree extended the deadline until December 31, 2020. The geography of the constituent entities of the Federation – the participants in the pilot project has been expanded at the expense of the Primorsky Territory, Khabarovsk Territory and the Leningrad Region. In addition, in order to ensure the possibility of participation in the pilot project of the largest number of retail organizations, it has been established that such organizations can be located throughout the territory of the constituent entity of the Federation that is a participant in the pilot project (instead of the specific addresses provided at present).

The decisions taken will make it possible to better meet the needs of tourists and positively affect the dynamics of trade in the first place of expensive goods, increasing the share of tourism costs for shopping.

Source government.ru