E-services. VAT registration

E-services. Russian VAT

Under the Russian Federal Law No. 335-ФЗ of 27.11.2017 starting from 1 January 2019 foreign e-services providers must be registered with the Russian tax authorities and pay Russian VAT themselves. Starting the said date Russian purchasers of e-services may not act tax agents. Thus in case the e-services provider does not register and, thus may not pay Russian VAT, the provider creates a tax evasion issue.

The registration is a must even if e-services are not subject to VAT. Please contact us for a consultation which e-services may be relieved from Russian VAT and what has to be done from the legal point of view to apply  the relief.

Once registered the e-service provides is to submit quarterly reports and pay the VAT.

We will be happy to assist you in all the issues associated with payment of VAT on e-services and help managing the following:

1. assessing operations to determine its nature as e-services and the necessity to register for the VAT purposes with the Russian tax authorities;
2. determination of VATability of the e-services and assist with proper legal structuring of the contracts
3. getting official clarifications from the fiscal authorities on e-services operations;
4. registration of e-services provider with the Russian tax authorities;
5. assessing of tax liabilities and filing of VAT tax returns concerning e-services transactions
6. advice on payment mechanisms for the VAT.

Fees for the services are:

Euro 700 – VAT registration services

Euro 40 per page – Translation of Extract from Trade Register into Russian.

Euro 250 – per quarterly VAT report

Euro 170 – hourly rate for other services, consultations, agreement review and etc.