Tag Archives: Russia

Russia – Webcast – Introduction of Russian VAT on digital services 14 December 2016

As you may already know, starting from 1 January 2017 new rules regarding VAT on digital services supplied by non-Russian entities to Russian customers come into force. Under the new rules, non-Russian companies supplying digital services to individuals will be obliged to register in Russia for VAT purposes and pay Russian VAT. B2B supplies of digital services will also be VATable and such VAT should be withheld from payment to foreign supplier. Given that there is only one month left prior these rules come into force, we would like to draw your attention to some issues currently seen in respect of introduction of VAT on digital services.

Indirect tax team of PwC Russia is delighted to invite you to a webcast on the matter which will take place on 14 December 2016  (9:00 am US Pacific; 12:00 pm US Eastern, 17:00 GMT, 18:00 CET, 20:00 Moscow time). Estimated duration of the webcast is 45 minutes + Q&A.

During the webcast we will cover, in particular, the following matters:

  • Registration procedure, including some insight from the tax authorities (required documents and similar issues);
  • Compliance matters (project of VAT return, supporting documents, information required to fill the VAT return in and other);
  • Unclear methodological issues, including:
  1. Differences in determination of the place of location of the buyer between Russian and EU rules;
  2. Under what circumstances the liabilities to register and pay Russian VAT may remain with an intermediary;
  3. What is the point of taxation for Russian VAT purposes;
  4. Are any exemptions applicable for digital services;
  5. How to avoid double taxation;
  • Control, enforcement and overall tax environment in Russia.
  • Actions to be taken in advance (pricing, commercial arrangements, changes to internal systems, etc.).

The speakers of the event are from PwC Russia ‘s team dealing with a number of projects in this field. We also currently discuss the possibility of participation in this event with representatives of Russian Federal Tax Service involved in taxation of digital services. There will be the opportunity to ask questions during the webcast.

If you plan to attend the webcast we would appreciate if you could let us know. This will allow us to plan for technological capacity accordingly. Please send a short confirmation e-mail to Igor Zafirov at igor.zafirov@ru.pwc.com. If you have any preliminary questions or would like to receive materials in advance, please mention this in the note.

We do hope that you can join us for this event. To join the webcast, please follow the instructions below.Audio for this webcast will be heard through your computer speakers.  If you have problems hearing audio, please post a question in the Q&A box to alert the presenters.

To Access the Webcast (via PC or Mobile Device)
:

Click on the following link to open the webcast:  https://pwc-emeaec.webex.com/pwc-emeaec/onstage/g.php?MTID=e2142c43ab0abad5b8ff2c299076ac14a
Complete the required registration fields and select “Submit”. You may be asked to install a plugin to view the webcast. We recommend to connect 5-10 minutes before to test sound and video settings.

Russia – draft legislation on VAT on B2C supply of electronic services

Russia can be the next in line to join the countries that impose VAT on the B2C supply of electronic services by non-established service providers. A draft legislation that would require foreign companies to start charging VAT on internet / digital services provided to individuals is currently being considered by the Russian State Duma.

According to the draft law, digital services provided by foreign companies to Russian individuals should be regarded as subject to Russian VAT even if currently such companies are not tax registered in Russia.

Find out more