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VAT Applicable To Videoconferencing Services Rendered By Russian Organizations To Foreign Organizations
Russia's Ministry of Finance has stated that, if videoconferencing services are provided by a Russian organization to a foreign organization, for tax purposes, the service is recognized as provided within the territory of the Russian Federation. Thus, VAT is to be charged for such services.
In its Letter No. 03-07-08 / 53786 of August 22, 2017, the ministry explains that the place of realization of works (services) shall be determined at the place of carrying out the activities of the organization performing (rendering) work (services), with the exception of works (services) stipulated in #1-4.1, 4.4 p. 1 of Art. 148 of the Tax Code. As videoconferencing is not included among those services listed in subparagraphs 1 to 4.1, 4.4 of Article 148 of the Tax Code does not apply and the territory of the Russian Federation is recognized as the place of realization of such services if rendered by a Russian organization to a foreign organization.
Translated by Alinga Consulting Group.
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