Federal Law № 389-FZ of 31 July 2023 introduced changes to Russian VAT registration rules for foreign companies supplying electronic services (e-services).
Under the amended rules, from 1 April 2024 foreign providers of e-services to private individuals (B2C e-services) are subject to registration for Russian VAT. When a foreign e-services provider stops providing such services, they should apply for deregistration. As a result, from 1 April 2024 Russian VAT registration requirements will no longer apply to companies supplying e-services to business customers (B2B e-services) in Russia.
At the same time, the law does not contain any provisions regarding the deregistration of foreign providers of B2B e-services that are currently registered for VAT purposes in Russia, and also does not contain any rules for a transition period.
Please, see the details in the review by Kept.
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Tax & Legal
09 August 2023