5 Major Developments in Russia

5 Major Developments in Russia

• The EU’s Eleventh Sanctions Package against Russia

• Amendments to the Tax Code with VAT-VAT for tour operators have been prepared

• Vladimir Putin Signs Law on Zero VAT for Ship Repair Yards

• EU adopts 11th package of sanctions against Russia for its continued illegal war against Ukraine

• Transfer of medicines not registered in Russia for seriously ill children exempt from VAT

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Customs

• US Government Imposes Significant Sanctions on Russia and Adds 71 Entities to the Entity List

Deduction (Input Tax Credit)

• Ministry of Finance: Input VAT on Cross-Border Supplies of Goods from Kazakhstan Not Deductible in Russia

• 20% VAT, presented by a supplier from new territories, can be deducted

E-Commerce / Electronic Services

• Russia Introducing VAT Destination Principle for Online Distance Sales of Goods in the EAEU

• VAT on trading through electronic platforms within the EAEU will be regulated

Exemption

• Amendments to the Tax Code with VAT-VAT for tour operators have been prepared

• Transfer of medicines not registered in Russia for seriously ill children exempt from VAT

• Ministry of Finance of Russia explains the features of VAT exemption for brokerage services

• Formal requirements for VAT exemption sale of tickets for cultural events

• Russia Proposes to Exempt Online Sales in EAEU from Double VAT

• List of equipment, the import of which is not subject to VAT, has been updated

• Decree Amending List of VAT-Exempt Technological Equipment Imported Into Russia

• Russia Proposes to Exempt Gold Prospectors from VAT

• Russia Launches Consultation to Exempt Tour Operators from VAT

• Tour operators will be exempted from VAT

• Changes have been made to the VAT exemption rules for imports from the EAEU

Export

• The EU’s Eleventh Sanctions Package against Russia

• Law Allowing Entities, Entrepreneurs to Apply Zero-Rated VAT on Previously Exported Goods

• Federal Tax Service has launched a service to simplify the confirmation of a zero VAT rate for exports

Importation

• Transfer of medicines not registered in Russia for seriously ill children exempt from VAT

• Updated declaration for indirect taxes

• List of equipment, the import of which is not subject to VAT, has been updated
• Decree Amending List of VAT-Exempt Technological Equipment Imported Into Russia
• Changes have been made to the VAT exemption rules for imports from the EAEU

Liability (Reverse Charge/Withholding)

• Russia MOF announces reverse charge for precious metals

Margin Scheme

• VAT-rule for the sale of used cars will change

• Russia Proposes to Amend VAT on Sale of Used Vehicles

Place of Supply

• No VAT on construction works carried out on the territory of new constituent entities of the Russian Federation under government contracts concluded before October 5, 2022

• Russia Introducing VAT Destination Principle for Online Distance Sales of Goods in the EAEU

Rate

• Vladimir Putin Signs Law on Zero VAT for Ship Repair Yards

• Russia Provides Zero VAT Rate to Ship Repair Facilities

• Russian domestic tour operators to be exempt from VAT – draft law

• Tour operators will be able to use a zero VAT rate

• A new list of types of tourism facilities has been approved for applying 0% VAT

• Zero VAT for the tourism industry: the list of has been re-approved

• 18+ books subject to 10% VAT

• No VAT on construction works carried out on the territory of new constituent entities of the Russian Federation under government contracts concluded before October 5, 2022

• “Hotel” VAT rate of 0% is not applicable for sanatoriums

• Russia Provides 0% VAT Rate for Goods Sold to Individuals Abroad

• Law Allowing Entities, Entrepreneurs to Apply Zero-Rated VAT on Previously Exported Goods
• Federal Tax Service has launched a service to simplify the confirmation of a zero VAT rate for exports

• List of goods subject to VAT at a rate of 10% has been expanded

• Which medical devices are subject to the preferential VAT rate: clarifications from the Ministry of Finance of Russia

• For hotels and sanatoriums, the forms of documents for the application of VAT benefits will be updated

• Services provided on ski slopes are subject to VAT at a rate of 20%

Refund

• The forms of documents have changed to reimburse VAT and excise tax participants in tax monitoring

• Unified application form for the application of the declarative procedure for VAT and excise refunds

Reporting / Compliance

• What are the most common mistakes made in VAT returns?

• Updated declaration for indirect taxes
• The forms of documents have changed to reimburse VAT and excise tax participants in tax monitoring

• How to fill out and submit VAT-declaring new regions to taxpayers

• For hotels and sanatoriums, the forms of documents for the application of VAT benefits will be updated

• Control ratios for VAT-declaring adjusted

• A paper VAT declaration form has been developed for taxpayers from new constituent entities of the Russian Federation

• Federal Tax Service announced two new codes for VAT-free transactions

• Not every overdue VAT return will be fined

• VAT declaration form and the procedure for filling it out have been updated

Taxable Amount

• Federal Tax Service of Russia explained the specifics of determining the tax base

Taxable Transaction

• Is the sale of tickets for quizzes and quests subject to VAT?

• Ministry of Finance of Russia explains the features of VAT exemption for brokerage services

• VAT rules for promotional goods will be changed

Tax Authorities / Penalties

• Control ratios for VAT-declaring adjusted

TOMS (Tour Operators Margin Scheme)

• Russia Launches Consultation to Exempt Tour Operators from VAT

War in Ukraine

• EU adopts 11th package of sanctions against Russia for its continued illegal war against Ukraine

• Japan introduces further sanctions against Russia

• US Government Imposes Significant Sanctions on Russia and Adds 71 Entities to the Entity List

• Details of the EU’s proposed 11th package of Russia sanctions announced

• 20% VAT, presented by a supplier from new territories, can be deducted
• Federal Tax Service of Russia explained the specifics of determining the tax base