VAT

  • Article

VAT is charged on transactions that involve goods and services in Russia or goods imported into Russia.

VAT Calculation

VAT rates in Russia are tiered into three rate levels. Each of these levels can be applied to specific types of goods and services, for example:

  • The highest VAT rate is applied to transactions that involve most types of goods and services.

  • The mid-level VAT rate is applied to transactions that involve a select group of food products, children’s products, and medical goods.

  • The lowest VAT rate is a tax incentive that is applied to exported goods.

There are several business activities that are exempt from VAT in Russia. For example, insurance, banking, and medical transactions are not subject to VAT.

An organization’s VAT liability is calculated as the difference between the VAT due on sales and the VAT from the cost of the goods or services sold. VAT is calculated for a transaction according to the rates and rules that are in effect on the day of the transaction.

VAT Payment

For most organizations, VAT payments are required to be submitted no later than the 20th day of the month. The timely submission of VAT payments is the responsibility of the taxpayer.

See Also

Tasks

How to: Set Up VAT Ledgers
How to: Prepare VAT Entries for Posting

Other Resources

About Setting Up VAT
How to: Set Up VAT Business Posting Groups
How to: Assign VAT Business Posting Groups to Customer Accounts and Vendor Accounts
How to: Correct VAT
VAT Entry Table