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Development of Judicial Practice on VAT Recovery in Property Redistribution of State Enterprises in Russia

  • The Arbitration Court of the Sverdlovsk Region ruled on a case involving the recovery of VAT during the redistribution of property of a Federal State Unitary Enterprise (FSUE) by the owner’s decision.
  • The tax inspection denied the FSUE a reduction in tax obligations due to adjustments of previously recovered VAT amounts related to property transfers to another FSUE, Radon, as per Rosatom’s decisions.
  • The inspection argued that the FSUE conducted non-VAT taxable operations, which should have led to VAT recovery.
  • The FSUE contested this position, citing contradictions with tax and civil legislation and referencing clarifications from executive authorities.
  • The court ruled in favor of the FSUE, stating that the property remained under the ownership of the Russian Federation, and no transfer of ownership occurred, thus no VAT recovery was necessary.

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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