Import VAT

Import VAT: the tax a company pays when it imports goods into Russia. All importers pay it, including companies on the simplified tax system.

How the tax base is made up

For goods from countries outside the Eurasian Economic Union (EAEU), the base is the customs value, plus the customs duty, plus excise tax if the goods are excisable (Article 160 of the Russian Tax Code). The rate is the standard one, or a reduced one for certain goods on government lists. Some goods are exempt from the tax.

When and where to pay

• Imports from third countries. VAT is paid at customs together with the duty, before the goods are released.
• Imports from EAEU countries. There is no customs clearance. VAT is paid to your own tax office, and an indirect tax return is filed within the deadlines set for imports from the EAEU.

Imported services

When services are bought from a foreign company, nothing is paid at customs. If Russia is considered the place of supply (Article 148 of the Russian Tax Code), the Russian buyer, acting as a tax agent, withholds the VAT and remits it to the budget (Article 161 of the Russian Tax Code).

Deduction

VAT paid on import can be deducted if the goods have been recorded in the accounts for taxable operations and there are supporting documents: the goods declaration and proof of tax payment. Companies on the simplified tax system that do not pay VAT get no deduction.

If an agent pays the supplier

The payment method does not affect import VAT: the base is calculated from the customs value, not from the transfer amount. But the customs value is based on the transaction price. So the amount in the contract, the invoice and the agent’s documents must match, or customs will have questions. We put together the payment document package: Import payments.

This text describes the general procedure and does not replace tax advice. We’ll decide on your delivery once we have reviewed its documents.