When purchasing electronic services from a foreign individual entrepreneur, a Russian organization must calculate and pay VAT

Type: Legislation

A Russian organization must calculate and pay VAT when obtaining electronic services from a foreign individual entrepreneur. According to tax legislation, a foreign entity selling services in electronic form on Russian territory and making direct payments to customers of these services must register with the tax administration and pay VAT (paragraphs 4, 6 of article 83 of the Tax code).  

However, as Russia’s Ministry of Finance notes, registration of foreign individual entrepreneurs who supply electronic services is not available. 

Effective date: January 2022 

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