03.06.07

The Ministry of Finance offered clarification regarding VAT on training foreign specialists for use and service of specialized equipment exported by a Russian company.

Since Russia cannot be considered a place of supply of services in regards to training foreign specialists for use and service of exported equipment outside of the territory of Russian Federation, it is not considered a tax entity for VAT in Russia.

Based on the Article 170 of the TC of the RF, amounts of VAT reported by suppliers of goods and services, used for performing this kind of training are not included in tax deduction. (Letter of the Ministry of Finance of the Russian Federation # 03-07-08/78  from April 17, 2007).

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