Russia’s Federal Tax Service (FTS) issued a release in April 2022 regarding the payment of VAT by Russian entities and individual entrepreneurs when acquiring electronic services from foreign providers. Considering the restrictions (sanctions) imposed on Russia by certain countries, foreign providers may face difficulties in transferring funds to meet their VAT payment obligations for electronic services provided to Russia. Considering this, it was recommended that Russian entities and individual entrepreneurs acquiring electronic services should calculate, withhold, and remit the VAT due on the service payment, which is deductible as input tax (i.e., reverse charge).
Source Orbitax
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