- If a buyer claims a VAT deduction from a prepayment made to the seller, the tax is recovered in the tax period in which the VAT amounts on the purchased goods are subject to deduction.
- Situations may arise where the seller ships goods in one tax period, but the buyer records them in another. In such cases, the buyer’s obligation to recover VAT arises when the goods are recorded, regardless of when the seller shipped them.
- For example, if a buyer makes a prepayment in the first quarter and claims VAT deduction, and the goods are shipped in the second quarter but recorded in the third quarter, the VAT is recovered by the buyer in the third quarter.
- Clarifications on this issue were provided by the Russian Federal Tax Service in a letter dated 23.05.2024.
Source: nalog.gov.ru
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.
