VAT on Travel Services Acquired from a Foreign Company
The place of supply of travel services provided by a foreign company to a Russian organization, is not recognized as being inside the Russian Federation. Accordingly, such services are not subject to VAT in Russia.
The Russian Ministry of Finance clarified in a Letter from 24.11.2016 #03-07-08 / 69349.
Paragraphs. 5 para. 1, Art. 148 of the Tax Code do stipulate that the place of sale of services is recognized as being provided within the Russian Federation if the activities of the organization providing the services are carried out within the Russian Federation. However, according to para. 2, Art. 148 of the Tax Code of the location of the organization rendering these services, recognized as being within the territory of the Russian Federation on the basis of its state registration.
Translated by Alinga Consulting Group.
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