VAT Return

Value Added Tax or "VAT" is a tax based on the value of goods or services. When doing
business in Russia, it is important for foreign companies to understand how VAT works, or to get outside help.

Our company knows all the intricacies of financial matters relating to foreign companies doing business in Russia and would be pleased to offer you its services in this area.

According to Russian legislation, there are sanctions for late or incomplete payment of VAT by tax agents and foreign companies, except for foreign organisations that are not VAT payers. Difficulties in calculating, filling in and filing documents are very common. If your company's in-house specialists do not have the time to immerse themselves in the nuances of taxation, we can offer you our services. Our specialists have expertise in accounting and tax accounting for foreign companies.

The payment of VAT in the area of electronic services is worth mentioning separately. The obligation to calculate and pay VAT for services in electronic form is incumbent on the foreign company which sells electronic services in Russia.

The services include:
- the granting of rights to use programs and databases;
- the provision of advertising services on the internet;
- the provision of advertising platforms on the internet;
- provision of a trading platform on the internet;
- website maintenance;
- provision of domain names, hosting services.

NOTICE

Service description

Foreign companies doing business in Russia are obliged to make various payments to the Russian budget and to prepare and keep their accounting documents properly.
Failure to comply with these rules entails quite a high risk: from fines to administrative and even criminal liability.

Individual entrepreneurs and organisations carrying out commercial activities in the Russian Federation are recognised as VAT payers.
VAT is remitted independently if the foreign company has branches or representative
offices registered in the territory of the Russian Federation in accordance with the procedure established by the legislation of the Russian Federation.
VAT is remitted by a tax agent (organisation and individual entrepreneurs registered with the Russian tax authorities and purchasing goods/services from a foreign company in the Russian Federation) if the foreign company does not have a branch or representative office.

VAT for foreign companies in the Russian Federation is payable at the place of sale. If
services are rendered or software products are sold in Russia, the Russian Federation will be regarded as that place.
It is not possible for foreign legal entities to pay VAT if they do not have a representative office or a branch in Russia, so tax agents do this for them.

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