22 June 2016 Russian State Duma passes bill on VAT taxation of electronic services in final reading The Russian State Duma passed on June 15, in its final reading, the Draft Law No. 962487-6, that provides new Value Added Tax (VAT) rules for electronic services (the Law). The Law was revised during the second reading and passed in the third reading without any further amendments. Under the final version of the bill, the VAT exemption that currently applies for the provision of rights to use software and databases under a license agreement remains in force. At the same time, the previously proposed profits tax preferences for Russian suppliers of electronic services and the provision allowing the deduction of input VAT on expenses relating to sales of electronic services to foreign customers have been excluded from the bill. The Law will come into force starting January 1, 2017. Document ID: 2016-1085 |
