Russia clarifies VAT rules for digital services provided by non-residents to Russian entities

• Russia’s Federal Tax Service issued Letter No. 16-18/081555 clarifying VAT obligations for digital services provided by non-residents to Russian entities
• When digital services like rights to images, music, and video are purchased by Russian entities, Russia is considered the place of supply and VAT must be applied
• Russian buyers are responsible for calculating and paying the VAT
• VAT rules for services exchanged within the Eurasian Economic Union (EAEU) were also addressed in the letter
• According to the 2022 protocol of the 2024 EAEU treaty, if an individual in another EAEU country receives the services, the supplier must register and pay VAT in that country
• For legal entities or individual entrepreneurs, the supplier must register only if required by local laws; otherwise, VAT is handled by the recipient under the reverse charge mechanism.

Source: regfollower.com

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.

---

---