12.05.08

Letter of the Ministry of Finance # 03-07-11/144 from April 14, 2008 is dedicated VAT as applied to goods worth over 100 RUR given to individuals as promotional gifts.

The Ministry holds the same position as in its previous letters: according to article 149 of the TC, giveaways (for promotional purposes) of goods or services which have a production or sale price not exceeding 100 RUR are officially tax exempt and have been since 2006.

According to MinFin, giving away promotional items (including souvenir items with the company’s logo) in the course of promotional activities (as opposed to transferring goods to non-profit organizations for charitable purposes) must be viewed for VAT purposes as uncompensated transfers of goods, and the tax base must be determined based on the marker price of transferred goods.

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Source: Российский налоговый портал