In Letter No. 03-07-11/73056 issued on 9 September 2021, the Russian Ministry of Finance clarifies the VAT implications for taxpayers receiving compensation for discounts provided to end consumers. Under the terms of the contract between the customer and the taxpayer (acting as a contractor), the latter undertakes to organize marketing campaigns by offering discounts to end consumers. The costs incurred by the contractor arising from the marketing activities are compensated by the customer in an amount equal to the discounts provided to end consumers.
Source: Deloitte
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