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
Latest Posts in "Russia"
- Putin Approves VAT Hike to 22% in Russia Amid Rising Military Costs and Falling Revenues
- Management Contract Price Increase Due to VAT Requires Approval at General Homeowners’ Meeting
- Russia Raises VAT to 22% from 2026, Introduces New Tax Changes and Benefits
- From 2026, Bank Card Service Fees in Russia to Be Subject to VAT at 22%
- Russia’s Tax Service Publishes Draft VAT Return with New 22% Rate, Effective Next Year
