Starting from 1 January 2019, Russian legal entities and individual entrepreneurs will stop assessing and paying VAT on the purchase of e-services from foreign companies.
Companies and individual entrepreneurs will no longer act as tax agents, whether or not the foreign company that supplied the services is registered with the tax authority. Such services include, for instance, hosting services, advertising on the Internet and the granting of domain names.
At present, foreign companies that supply e-services in Russia are obliged to register with tax authorities only if they work with individuals. Such companies can register with tax authorities, file their accounts and pay VAT in their accounts on the website of the Federal Tax Service. Those companies that do business with legal entities and individual entrepreneurs should apply a similar procedure for registering and paying taxes as from 2019.
Acsour’s experts are ready to advise you on amendments to Russian tax legislation.