5 Major Developments in Russia

5 Major Developments in Russia

• European Union: EU adopts further sanctions against Russia
• Russia: EU publishes 9th package of sanctions

• Russia Allows VAT-Free Purchase of Precious Metals by Individuals Directly from Refineries

• Russia’s war of aggression against Ukraine: EU adopts 9th package of economic and individual sanctions

• VAT nuances of importing EAEU goods not through the EAEU country

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Customs

• UK updates guidance on Russia trade sanctions

• Commerce Department revokes Russia’s market-economy status in antidumping proceedings

• Government of Canada announces withdrawal of Most-Favored-Nation tariff benefit on goods originating in Russia and Belarus

• Eighth package of sanctions against Russia includes new import and export restrictions

• Belarus-Russia agreement on customs legislation ratified by lower chamber of Russian parliament

Deduction (Input Tax Credit)

• VAT rates from advance payment and from shipment differ: which input VAT to claim?

• Buyer must recover VAT from the advance payment at the time of shipment of the goods by the seller

E-Commerce/Electronic Services

• Withholding VAT in the EAEU countries for online commerce changed

Environmental Tax

• Plastics and Packaging Laws in Russia

Excise

• Belarus, Russia sign agreement on indirect taxation principles

• Indirect Tax Agreement between Belarus and Russia to be Signed

• Russian Federation has approved the Treaty with Belarus on General Principles of Taxation on Indirect Taxes

• Russia and Belarus announce VAT and excise union 2023

Exemption

• List of VAT-free transactions has been expanded

• Russia Allows VAT-Free Purchase of Precious Metals by Individuals Directly from Refineries

• VAT exemption for non-residents on advertising services

• Plans to extend exemption for computer programs related to defense and security

• Food delivery can be subject to VAT exemption

• Expansion of the list of transactions exempted from VAT

• VAT rate for sanatoriums

• VAT rate for sanatoriums

Export

• Easier for exporters to confirm the 0 percent VAT rate

• Russia: EU publishes 9th package of sanctions

• UK adopts sanctions and export control regulations

• Eighth package of sanctions against Russia includes new import and export restrictions

Implementation/Reform

• Russia and Belarus announce VAT and excise union 2023

Importation

• VAT nuances of importing EAEU goods not through the EAEU country

• Import VAT will also be paid through the EPP

• Federal Tax Service of Russia clarified the features of VAT payment when importing goods from the EAEU as a single tax payment

• Import VAT will also be paid through the EPP

• Federal Tax Service of Russia clarified the features of VAT payment when importing goods from the EAEU as a single tax payment

• Eighth package of sanctions against Russia includes new import and export restrictions

Private Use

• When should VAT be charged on the cost of food for employees?

Rate

• Easier for exporters to confirm the 0 percent VAT rate
• Russia Allows VAT-Free Purchase of Precious Metals by Individuals Directly from Refineries
• When the “hotel” VAT rate of 0% is applied to catering services

• Children’s goods are proposed to be taxed at a zero rate of VAT

• Russia Planning to Cut VAT Rate on Several Goods

• Russia cuts VAT to 5% on basics

• Proposed to reduced VAT rate for products and children’s goods

• 0% VAT for commuter railway transportation of passengers is planned to be extended until the end of 2034

• Russia Clarifies That Reduced VAT Rate Does Not Apply to Processed Vegetables

• 0% VAT proposed for tour operator activities

• VAT rate for sanatoriums
• VAT rate for sanatoriums

• Russia Proposes to Limit Application of Zero VAT Rate to International Cargo Transportation that Crosses Russian Border

• Palm oil fractions will be subject to the standard 20% VAT rate

• Russia Introduces Zero VAT Rate on Sale of Diamonds

Reporting/Compliance

• Federal Tax Service of Russia clarified which codes tax agents should use in their VAT returns

• Which codes to indicate in the VAT declaration for new categories of beneficiaries

Taxable Amount

• VAT on a security deposit under a rental agreement?

• Federal Tax Service: VAT calculation when applying state regulated prices

Tax Authorities/Penalties

• Review of letters from the Ministry of Finance of Russia and the Federal Tax Service of Russia for the third quarter of 2022

• Indirect Tax Agreement between Belarus and Russia to be Signed

• Russia Reduces Key Interest Rate to 7.5% Impacting Interest Penalties

Tax Point (When the Chargeable Event Occurs)

• Buyer must recover VAT from the advance payment at the time of shipment of the goods by the seller

Taxable Transaction

• VAT on a security deposit under a rental agreement?

• Russia Confirms Advertising Services Provided to Non-Residents are Not Subject to VAT

War in Ukraine

• European Union: EU adopts further sanctions against Russia

• FAQs on sanctions adopted following Russia’s military aggression against Ukraine and Belarus’ involvement in it.

• Russia: EU publishes 9th package of sanctions

• Russia’s war of aggression against Ukraine: EU adopts 9th package of economic and individual sanctions

• UK updates guidance on Russia trade sanctions

• How Russian contractors calculate VAT during the transition period

• Ukraine: EU agrees on eighth package of sanctions against Russia

• Switzerland Suspends Exchange of Tax Information with Russia