Who pays VAT when establishing servitude? Taxation clarification for land use restrictions in Russia.

• Special VAT taxation rules apply from October 1, 2023 for granting limited use rights to land in Russia
• Tax agents pay VAT in the case of servitude established for their benefit
• Uncertainty remains regarding VAT taxation for servitude on land owned by government institutions
• Institutions must calculate and pay VAT when granting servitude on land they own
• Tax base for VAT calculation should be the payment for servitude without tax included
• No specific provisions in Tax Code for applying reduced tax rate for servitude payments
• Tags: civil liability, real estate, taxes, VAT, legal entities, Ministry of Finance of Russia

Source: garant.ru

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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