Development of Judicial Practice on VAT Deductions for Modular Buildings for Temporary Worker Accommodation

• The case involves the application of VAT deductions for modular buildings used for temporary worker accommodation.
• On September 12, 2025, the Arbitration Court of the Tambov Region ruled on the case of Kristall regarding VAT deductions for modular buildings.
• The Federal Tax Service of Russia conducted a tax audit and denied VAT deductions for Kristall’s expenses on modular buildings.
• The tax authority argued that the buildings were used for providing residential services, which are VAT-exempt.
• Kristall argued that the buildings were for efficient production processes and not for residential purposes.
• The court sided with the tax authority, stating the buildings were used for non-VAT taxable operations.
• The court’s decision did not consider arguments based on a previous Supreme Court case that might have supported Kristall’s position.

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.

---

---