5 Major Developments in Russia

5 Major Developments

• Government amends the Regulations for Digital Currency
• VAT on foreign electronic services: clarification from the Federal Tax Service
• VAT-free limit on advertising expenses will be increased
• Russia Reduces Key Interest Rate to 8.0% Impacting Controlled Debt Rules and Interest Penalties
• VAT on fuels and lubricants and other goods for car maintenance can be deducted on the basis of a cash receipt

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Cryptocurrency and NFT

• Government amends the Regulations for Digital Currency

E-Commerce

• Ministry of Finance of Russia guidance about electronic services provided by foreign companies

• VAT on foreign electronic services: clarification from the Federal Tax Service

• Russia Limits VAT Obligations of Non-Resident Electronic Service Providers

• Federal Tax Service explains changes for calculating and paying VAT for electronic services by foreign organizations

• Government clarifies changes on VAT Treatment for Digital Services

Exemption

• Services did not qualify as exempt “know how” but as taxable consultancy

• Ministry of Finance proposed to exempt developers of military programs from VAT

• VAT-free limit on advertising expenses will be increased

• VAT exemption for semi-finished culinary products?

• Proposal to extend the validity of the VAT exemption for agricultural producers

• Deputy Speaker of the State Duma proposed to temporarily abolish VAT on school goods

Tax Authorities/Penalties

• Russia Reduces Key Interest Rate to 8.0% Impacting Controlled Debt Rules and Interest Penalties

Reporting/Compliance

• How to fill out a VAT return for a volunteer tax agent

• The VAT return must be submitted electronically via TCS

• New boxes have been added to the VAT return for VAT exempt and zero rated transactions

Refund

• Retail business of the Khabarovsk Territory is invited to join the Tax Free VAT refund system

• Declarative VAT refund procedure: in which cases a bank guarantee is not required

Rate

• For the 0% rate of 0%, the hotel must be included in a special register

• Russia Tax Agency Announces Zero VAT Rate on Certain Sales of Natural Diamonds

• Russia Proposes Zero VAT Rate for Companies Assisting Donbass Region

• When is the VAT rate of 10% applied to the sale of medical devices?

Input Tax Credit

• Court allowed input VAT on basis of cash receipts for gasoline

• VAT on fuels and lubricants and other goods for car maintenance can be deducted on the basis of a cash receipt

• Declarative VAT refund procedure: when is a bank guarantee required?

• How to get an accelerated VAT refund in a declarative manner

• Changes to the VAT-free limit on promotional gifts

• VAT refund period has been reduced to eight days

Taxable Amount

• Ministry of Finance explains tax base for VAT on the sale and transfer of property