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Russia: Full input VAT recovery on export of services, work

Russia: Full input VAT recovery on export of services

Full input value added tax (VAT) recovery on sales relating to the supply of services and to work performed outside of Russia will be available beginning 1 July 2019 (i.e., the next VAT period).


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This input VAT recovery will apply on “export” of services, but not with respect to services or work already exempt from Russian VAT. This change will affect companies in a number of industries. 

KPMG observation

While tax professionals believe that these new rules will increase the VAT effectiveness of operations and transactions, it will be important for Russian entities to have sufficient documentary proof that, for VAT purposes, the place of supply of the exported services or work is not Russia. 

Read an April 2019 report [PDF 306 KB] prepared by the KPMG member firm in Russia

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