Krasnoproletarskaya ul. 16/1

Entrance 3, 4th floor

T: +7 495 989 54 84

E: info@lowlands.ru

LowLands Moscow

Nevsky Prospekt 30

3rd floor, office 3.12

T: +7 812 374 65 70

E: info@lowlands.ru

LowLands St. Petersburg

Direct Message

VAT Registration E-Services Provider

VAT on electronic services

Since January 2017 (Federal Law # 244-FZ of 3 July 2016), non-resident providers of electronic services to Russian customers have been required to register for, and charge VAT.  This mirrors similar regimes in the European Union and other countries around the world. Until 1 January 2019, B2B transactions for digital services were zero rated (reverse charge) when provided by a non-resident seller.

New rules since 01.01.2019

Following changes applied from 1 January 2019 however, foreign suppliers of electronic services (e-services) and foreign intermediaries involved in settlements with Russian taxpayers for electronically supplied services will be obliged to register for the purpose of paying VAT on those supplies.

Which services are considered as E-Services?

Below is a list of the services that are considered E-services:

  • Software and video games

  • Music, books, films

  • Ads and trading platforms

  • Search machines engines and social networks

  • Databases, hosting, websites

Examples (non-limitative) of excluded services are

  • Online sale of goods and/or services that are delivered/performed without internet

  • Sale of licenses for software and databases on tangible storage

  • Provision of advisory services by e-mail

  • Provision of internet access services

LowLands Accounting Service services support 

Our team of experienced consultants is ready to support you with:

  • Determining whether your company needs to be registered

  • Registering with the Russian tax authorities

  • Submitting VAT returns

  • Executing VAT payments from abroad to the Russian tax authorities

 

If you want to know more about these regulations or have your VAT returns taken care of by LowLands Accounting Services, please contact us.

OUR SERVICES

VAT Registration E-Services Provider