The duties of a tax agent have been expanded

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In transactions with foreigners, there is more often an obligation to act as a tax agent.

The Federal Tax Service reminds that as from 1 October amendments were made to Article 161 of the Tax Code in relation to the obligations of tax agents in relation to VAT. The updates concern cases where Russian taxpayers acquire goods/work/services from foreign persons. At the same time, according to Article 147 of the Tax Code, the place of sale of such goods / works / services is the Russian Federation. If before October 1 Russian taxpayers were recognized as tax agents if the foreign entity is not registered with the tax authorities of the Russian Federation. If a foreigner was registered with the tax authorities on any grounds, then he himself was obliged to report and pay VAT to the budget.

As of October, new grounds for Russian buyers to act as tax agents for VAT have been in effect, namely, in cases where a foreigner:

• is not registered with the Russian tax authorities; 
• registered with the Russian tax authorities, but only at the location of the property, transport or on the basis of the opening of a current account;
• is registered with the Russian tax authorities, but only at the location of the separate subdivisions and sales are not made through such separate subdivisions.