Russia: New VAT rules on cross-border e-commerce services: key points for B2B service providers
Russia has introduced new value-added tax (VAT) rules pertaining to certain cross-border e-commerce services, and these new rules are expected to have a significant impact on foreign e-commerce service providers.
The new rules, which become effective from January 1, 2019, mean that foreign companies supplying e-commerce services directly to Russian customers (legal entities and individual entrepreneurs), will be obliged to:
- register with the Russian tax authorities; and
- independently calculate and pay VAT on the value of services rendered.
Please contact a member of the tax team for practical takeaways for companies that are pondering action steps ahead of the January 1, 2019 effective date.