Development of Judicial Practice on VAT Rates for Services by Russian Organizations in Seaports

• The case involves determining the applicable VAT rate for services provided by Russian organizations in seaports.
• On June 2, 2025, the Arbitration Court of Primorsky Krai issued a decision regarding Terminal Astafieva.
• The case examined the applicability of a 0 percent VAT rate to services provided to foreign organizations.
• The decision followed a re-examination due to partial annulment of previous court decisions.
• The tax authority conducted a comprehensive audit of Terminal Astafieva for various tax periods.
• The audit resulted in additional tax assessments for profit tax, VAT, penalties, and fines.
• The tax authority claimed the company understated revenue from export services.
• Revenue was allegedly diverted to affiliated foreign companies and individuals.
• The company did not include this revenue in VAT declarations or provide supporting documents.
• The tax authority argued that additional services provided were not eligible for a 0 percent VAT rate.
• The court rejected the tax authority’s arguments regarding the inapplicability of the 0 percent VAT rate.

Source: russiantaxandcustoms.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.

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