Tax law changes effective August 31, 2023
From August 31, 2023, a number of changes in tax legislation come into force, which may affect many taxpayers.Read more
VAT on electronic services provided by foreign companies to Russian customers
Electronic services provided by foreign companies in Russia are subject to VAT. In order to exercise tax control over such transactions, the tax legislation provides for the obligation to tax register foreign organizations that are providers of electronic services or intermediaries involved in settlements.Read more
Ratification of OECD Multilateral Convention (MLI)
The President of the Russian Federation signed on May 01, 2019 Federal Law No. 79-FZ Ratifying the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Tax Base Erosion and Profit Shifting.
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VAT for e-services provided by foreign companies
Google tax will apply from January 01, 2019 onwards to all e-services purchased from foreign companies. Foreign organizations will be required to register with Russian tax authorities and themselves calculate and pay Russian VAT regardless of whether their counterparty is an individual, legal entity or individual entrepreneur.Read more
Agent VAT upon payments to foreign companies in Russia
Foreign companies often enter into contracts with their subsidiaries in Russia for provision of services such as, for example, management services, consulting services, information support, royalties, etc. In some cases, the Russian subsidiaries will be required to withhold agent VAT upon payment of fees for services rendered to their parent company.
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