Provision of services to non-resident legal entities (Russia)
The Ministry of Finance of the Russian Federation issued Letter, dated August 1, 2006, which clarifies the procedure for imposing value added tax on services rendered to non-residents of the Russian Federation. Present Letter explaines that value added tax is not levied on services provided to organizations operating outside the Russian Federation, as such services are not rendered within the country’s borders. The Purchaser of the services must be a non-resident or an organization which does not have a Representative or Branch office in the Russian Federation. It is necessary to present the contracts concluded with foreign or Russian entities to tax assessors as supporting documents, along with any other documents verifying the provision of services (such as foundation documents of Purchaser of the services).