VAT in Russia

Updated on Monday 18th April 2016

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VAT-in-Russia.jpgValue added tax (VAT) was first introduced in Russia in 1992 and it is now established at the standard rate of 18%. Companies with operations in Russia, regardless if they are local or foreign, are required to register for taxation (including VAT) and to pay for VAT in accordance with the stipulations of the local legislation. Businessmen should know that several industries are taxed at a lower VAT and that other industries can be exempted from this tax; our Russian company formation agents can provide you with more information on the local VAT rates
 

Characteristics of the Russian VAT 

 
Foreign investors conducting business operations in Russia have to register for VAT, but it is important to know that the Russian legislation does not require a separate VAT registration, as this process is incorporated in the general tax registration. 
 
As a general rule, the standard VAT is established at the rate of 18% for most of the products and services provided on the Russian market; property rights and various types of works are also taxed at the standard rate. 
 
The lower tax rate, applicable at 10%, is provided for several types of products; in this category are included the following: 
 
basic foodstuff; 
clothes for children;
medical products;
medicaments;
printed products. 
 

Imports and exports VAT in Russia 

 
Entrepreneurs with activities in the field of trading should know that the imports of goods are taxed at the rate of 10%. Exports from Russia are not subjected to VAT, as well as other export related activities, on which our Russian company formation agents can provide you with more details. 
 
International transportation, for goods or persons, is also exempted from paying VAT
 

Goods and services exempt from paying VAT in Russia 

 
There are several industries which are not subjected to paying the VAT, a measure which encourages the financial development of the local market. 
 
Banking and insurance services are not required to register for VAT; the same rule is applicable for financial institutions or educational services. 
Passenger transportation is also a domain for which businesses are not subjected to VAT. The legislation is available for certain medical products. 
 
If you need further information on the VAT in Russia, please contact our Russian company formation agents
 

Comments

  • Michael 2016-03-21

    I have a small company producing clothes for babies and children. I was thinking about expanding my company in Saint Petersburg and now that I know the local VAT applicable to this business is only 10%, I'd like to know more about the registration process. Thank you.

    Hello, you can send us your request via e-mail at office@lawyersrussia.com and one of lawyers will answer you. 

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