From January 01, 2019 onwards, foreign companies providing E-services to individuals and legal entities in the Russian Federation will have to calculate and pay VAT on their service fees themselves.

The provision of rights to use programs, advertising services and sites, site support, information storage and processing, as well as hosting are some of the E-services provided online.


Federal Law N 244-FZ dated July 03, 2016 Amending Part 1 and Part 2 of the Russian Tax Code

The obligation to calculate and pay VAT up until January 01, 2017 was fulfilled by tax agents, i.e. Russian organizations and individual entrepreneurs purchasing E-services from foreign companies.


Do you need to register with the Federal Tax Service of Russia?

ONLINE CHECK


What needs to be done?

From January 01, 2019 onwards, foreign organizations providing services in electronic form will be required to:

  • Register with the Federal Tax Service as a taxpayer
  • Obtain a taxpayer identification number (INN)
  • Pay tax
  • Submit tax return quarterly

Applications for registration with the Federal Tax Service can be submitted online on website of the Federal Tax Service. This service is also available in English.

In addition to registering with tax authorities, it is also necessary to calculate VAT properly, taking into account VAT relief as well as the conditions under which services are deemed sold in the Russian Federation, calculate the tax base and submit reports in due time.


What do we offer?
  • An online check to determine whether registration with Russian tax authorities is necessary or not;
  • We review whether certain tax relief applies;
  • We provide accurate and transparent tax calculations;
  • We submit our VAT calculations to clients for approval;
  • We prepare documents for payment of tax;
  • We submit VAT returns to tax authorities within statutory deadlines using taxpayer online accounts;
  • We guarantee compliance with deadlines for submission of reports (reports are sent to tax authorities through an e-document operator in the event of internet failure);
  • We represent client interests in tax offices;
  • We work on behalf of clients using their taxpayer online account on the portal of the Federal Tax Service of Russia;
  • We provide explanations to any additional requests from tax authorities and help with the translation of documents into English;
  • We explain applicable tax regulations relevant to foreign companies operating in the Russian Federation.

Our strong points

EXPERIENCE AND LIABILITY

We have been providing support to foreign businesses in Russia for over 20 years with a professional liability insurance cover of RUB 180,000,000.

SERVICE MODEL

We offer the best ways of liaising with regulatory authorities and can do this on your behalf. Our specialists speak English fluently so it is very easy for us to communicate with parent organizations. We also have a free hotline for any comments and suggestions you may want to pass on to us.

SAFE DOCUMENT MANAGEMENT

Our document management processes comply with ISO 27001 and SSAE18 data security standards as well as Russian laws on personal data protection.

SERVICE QUALITY CONTROL

Our Audit and Methodology Department constantly monitors the quality of the services we provide. Our staff assessment system and processes conform to ISO 9001:2015 quality management system standard.

Important note

  • If a foreign company is already registered with the Federal Tax Service, pays VAT and submits reports on services for individuals, then such companies will not be required to register again, but they will need from January 01, 2019 to pay VAT and submit reports on services for legal entities, as well as duly draw up documents entitling Russian customers to VAT deductions.
  • If payments for E-services are made through a branch/representative office registered in the Russian Federation, there are no grounds to register as VAT payer.
  • If E-services are provided through an agent or agents that participate in payments, then the obligation to calculate and remit VAT to the budget is to be assumed by the intermediaries who will become, from a tax law standpoint, tax agents.