Understanding VAT Accounting for Subsidized Goods in Russia: Guidelines by the Federal Tax Service

• The Russian Federal Tax Service explained the procedure for accounting for VAT on goods purchased with subsidies
• Organizations are reminded by the tax service about the procedure for accounting for subsidies in the tax base for VAT
• Funds not related to payment for goods are exempt from taxation
• Generally, input VAT on goods paid for with subsidies is not deductible
• If subsidies cover costs without including VAT, then input VAT can be deducted
• Non-deductible VAT amounts can be included in the cost of goods or written off as expenses

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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