- Transfer of property within the initial contribution to a participant of a business entity upon exit is not subject to VAT.
- If the value of the property transferred to a participant exceeds their initial contribution, the excess amount is subject to VAT.
- When transferring real estate to a participant upon exit, previously deducted VAT amounts must be restored proportionally to the value of the real estate corresponding to the initial contribution.
- The rule that exempts VAT recovery for real estate in use for at least 15 years does not apply to real estate used for production or sale of tax-exempt goods or services.
- This information is provided by the 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.
Latest Posts in "Russia"
- Russia’s VAT Hike to Fund Defense Spending Expected to Increase Inflation by 1% Next Year
- Russia’s SPOT System Boosts VAT Revenue Growth in Federal Budget for Second Year
- Russian Finance Ministry Proposes VAT on Foreign Marketplace Purchases Starting 2027
- Russian Finance Ministry Proposes VAT on Foreign Goods from Marketplaces, Gradual Rate Increase Planned
- New Control Ratios Added to VAT Declaration for Enhanced Taxpayer Self-Monitoring and Compliance
