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Russian VAT is easier than you think

KPMG webcast

KPMG webcast

Have you heard that Russian is a difficult language? Heard the same about Russian tax?

The Russian VAT rules for cross-border, electronically supplied services (e-services) to local customers were originally meant to be similar to VAT rules for e-services in European countries: friendly for foreign companies, and easy to comply with even if the foreign firm had no presence in Russia. Even a person with no knowledge of Russian could handle online VAT registration, reporting and payments.

So how close did the Russian tax authorities come to creating an easy-to-manage online VAT compliance process for foreign companies? They had mixed results. On the one hand, foreign companies successfully filed online VAT returns via the tax authorities’ platform; on the other hand, foreign companies struggled for months to make cross-border VAT payments.

In 2019 e-services VAT rules were also extended to cover the B2B cross-border supplies of e-services to Russian customers. These new rules applied to many companies, some of which had no idea that they even supplied e-services and thus had to comply with these requirements! You too could face Russian e-services VAT if you have clients or subsidiaries in Russia! Even though in general VAT compliance is largely straightforward and manageable, some areas are still difficult for non-Russian companies and people.

This session provides the opportunity to explore key points that have been “lost in translation” by the Russian tax authorities, highlighting the areas where foreign companies, registered for VAT in Russia, face the most significant issues. 

The following topics will be covered:

1)      General overview of Russian e-services VAT.

Overview of Russian e-services VAT. Legislative requirements and comments issued by the tax authorities. Is it possible to apply the reverse-charge mechanism on e-services?

2)      Responsibilities after registering for e-services VAT.

Declaring other services subject to Russian VAT. The impact of VAT registration on a PE’s status. Voluntary disclosure.

3)      Filing VAT returns and communicating with the tax authorities.

The most common issues when filing VAT returns. The key areas to focus on in tax audits on VAT-registered companies by the Russian tax authorities.

4)      Payment of VAT to the Russian tax authorities.

How to pay tax from a bank account in your country. How to use subsidiaries when paying VAT for a foreign company. How to pay using a corporate card.

5)      Covid-19 measures from the Russian tax authorities for e-services VAT.

Measures already announced and implemented by the Russian tax authorities for e-services VAT companies. Which measures apply in practice and which only exist on paper.

The purpose of this session is to help you better understand local compliance with indirect tax as well as support you in resolving the issues that are most difficult for foreign companies and people.

Presenters:

Natalya Zhiganova, Partner, Head of Compliance and Outsourcing, KPMG in Russia,

Anton Kuzminykh, Director, Compliance and Outsourcing, KPMG in Russia,

Anton Grebenchuk, Director, Indirect Tax, KPMG in Russia.

You will have the opportunity to question the speakers.

Timing. The webinar will be held on 8 October and start at 4pm Moscow Time (UTC+3), 9am EST (UTC-4), 3pm CET (UTC+1). It will last for 3 hours.

Language: The webinar and presentations will be in English.

Participation fee: EUR 200 per participant (net of VAT). Please note that the invoices will be issued on 1 of October.

Registration. To register, please follow the link or confirm your attendance by contacting Irina Egereva (iegereva@kpmg.ru), +7 (495) 937 44 77.

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