VAT exemption as part of the tax maneuver IT sector

What is changing and what are anticipated consequences for business?

What is changing and what are anticipated consequences for business?

On 21 July 2020 the State Duma adopted a draft law on “tax maneuver” in the IT sector in the first reading. The draft law has been prepared further to the orders of the President of the Russian Federation on support for the digital technologies sector. The second reading of the draft law is scheduled for 22 July 2020. The draft law stipulates, inter alia, a change in the procedure for applying the VAT exemption. The review below contains analyses of the amendments in regard to VAT and the anticipated consequences for business.