- The Russian Ministry of Finance has issued Guidance Letter No. 03-07-08/56855, which explains the currency exchange rate to be used when Russian tax agents withhold VAT on payments to non-residents.
- VAT must be withheld on payments made to non-resident individuals or companies who are not registered with the tax authorities in Russia or are only registered due to their real estate, vehicles, or bank accounts in Russia.
- The guidance letter clarifies that the VAT due must be converted to Russian rubles using the foreign exchange rate of the Russian Central Bank on the date of payment to the non-resident.
Source Orbitax
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