Russian Finance Ministry Clarifies VAT Payment Procedure for Services from Foreign Companies

• The Russian Ministry of Finance clarified the VAT payment procedure for purchasing services from a foreign company.
• If foreign entities not registered as taxpayers in Russia provide goods or services in Russia, tax agents calculate and pay VAT.
• This rule applies even if a payment intermediary is involved.
• The Russian organization must calculate and withhold VAT when transferring funds to the payment intermediary.
• The tax agent issues an invoice when transferring funds to the payment agent.
• The invoice includes the number and date of the payment document created by the tax agent.

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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