Type: Legislation
A Russian organization must calculate and pay VAT when obtaining electronic services from a foreign individual entrepreneur. According to tax legislation, a foreign entity selling services in electronic form on Russian territory and making direct payments to customers of these services must register with the tax administration and pay VAT (paragraphs 4, 6 of article 83 of the Tax code).
However, as Russia’s Ministry of Finance notes, registration of foreign individual entrepreneurs who supply electronic services is not available.
Effective date: January 2022
