The deadline for submitting value added tax (VAT) returns for the third quarter (Q3) of 2019—which is the first VAT period when input VAT related to services (work) deemed supplied outside or exported from Russia may be recovered—is 25 October 2019.
New rules, effective 1 July 2019, allow Russian companies to recover in most situations input VAT related to certain services that are charged to foreign customers (such as marketing, advertising, consulting, legal, and certain other services). Before 1 July 2019, this VAT was not recoverable and was an extra cost that typically has been included into the service fee charged to the foreign company. Read TaxNewsFlash
The new measures may have the following effect:
The rules can be illustrated as applying in two typical situations and industries:
Main areas of focus include:
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