Currently, when a foreign company supplies goods or services (or work) that are subject to VAT (except for services provided in electronic form), if the foreign company is not registered with the Russian tax authorities, VAT is to be remitted by the tax agent. If the proposal is finalized, Russian companies would need to identify instances when they act as tax agents and the administrative burden of foreign companies would be reduced (no need to remit VAT, issue VAT invoices, etc.).
Source: KPMG
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