Ends withholding tax requirement
The Russian Federal Law has been amended from 1 October 2021 to introduce the Value Added Tax reverse charge on supplies made by non-residents to Russian businesses within the Russian Federation.
The changes were included in Federal Law No. 305-FZ from the summer.
Previously, a withholding VAT agent mechanism applied. This has a similar effect, with the agent calculating and splitting the VAT element of the supply from the payment to their foreign supplier.
Register for our FREE global VAT and GST news updates.
