The deadline for submission of VAT returns for Q3 2019 is 25 October 2019. This is the first VAT period when input VAT on the “export” of services (or work) can be recovered (recovery of input VAT on services or work deemed as supplied outside of Russia).
Starting on 1 July 2019, the new rules (in most cases) allow Russian companies to recover input VAT related to services rendered to foreign customers without VAT (such as marketing, advertising, consulting, legal and some other services). Before 1 July 2019, this VAT was not recoverable and was an extra cost.
Typical cases and industries:
Case 1 – A Russian subsidiary renders marketing, consulting or other services to a foreign group company. This is often relevant to software, technology, industrial products, FMCG, and financial companies.
Case 2 – A Russian company renders consulting, advertising, engineering, construction (outside Russia), software development, electronic or some other services to foreign third party customers as its main business. This is usually relevant to infrastructure (construction, engineering), professional services and IT companies.
Main areas to focus on:
To learn more on this matter, please refer to our leaflet below.
25 октября 2019 г. наступает срок подачи деклараций по НДС за 3 квартал 2019 г. – первого налогового периода, в котором может быть принят к вычету НДС