29.10.08

Apparently the term “lost in translation” does not apply to VAT expenses. Translation of technical documents done by a Russian organization in Russia for a foreign company is subject to VAT in accordance with the standard procedure. This view is expressed in Letter of the Ministry of Finance # 03-07-08/225 from October 6, 2008.

Assets subject to VAT include sales of goods and services on the territory of the Russian Federation. Procedures for determining place of supply of service for tax purposes is prescribed in Article 148 of the Tax Code of the RF based on type of offered service. Translation of technical documents is not included in provisions of Article 148, thus, according to the Ministry, place of supply of this service is determined as being in Russia.

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Source: Российский налоговый портал