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VAT Taxpayer Registration For Foreign Organizations Providing Services In Electronic Form
Foreign organizations rendering services in electronic form to individuals in Russia are obliged to register with Russia's tax authorities if those services are not provided through a rep company in Russia.
The Federal Tax Service of Russia clarified this in Letter No. SD-4-3 / 11084 @ of 13.06.2017.
This is based on Paragraph 4.6 of Article 83 of the Tax Code of the Russian Federation. There it is stated that foreign organizations must register if they provide services in electronic form when: 1) the place of sale of those services is recognized as being on the territory of Russia, and 2) the organization performs settlements directly with individual customers and with foreign intermediary organizations recognized as a tax agents. Excepted are those foreign organizations which carry out entrepreneurial activities through branch offices in Russia.
The tax declaration of a foreign organization for VAT can be sent by its representative office, hence the reason that no additional registration is needed.
Rep offices of foreign organizations may pay VAT from rep office accounts, provided that the payment order is filled in accordance with established procedure (the payment order shows the taxpayer identification number (ИНН) and the tax registration reason code (КПП) for the taxpayer whose obligation to pay the tax is being fulfilled.
Translated by Alinga Consulting Group.
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