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Where Taxpayers and Advisers Meet

Russian Import VAT

AdsTheDevil
Posts:1
Joined:Mon Apr 03, 2017 11:14 am
Russian Import VAT

Postby AdsTheDevil » Mon Apr 03, 2017 11:21 am

There is a valid delivery term DDP VAT UNPAID.
This can be read from Incoterms.

If a UK Company wanted to delivery goods DDP VAT UNPAID into Russia, how does the VAT get paid and reclaimed by Russian customer?

I understand that "normally" it is the Importer of Record who pays the Import VAT.
Is this 100% true for all cases?

Can the Russian Customer Pay the Import VAT and reclaim it, per the DDP VAT UNPAID delivery term?

How is this handled?

Cheers

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm

Re: Russian Import VAT

Postby Lavender2306 » Thu Apr 27, 2017 6:06 pm

There is a valid delivery term DDP VAT UNPAID.
This can be read from Incoterms.

If a UK Company wanted to delivery goods DDP VAT UNPAID into Russia, how does the VAT get paid and reclaimed by Russian customer?

I understand that "normally" it is the Importer of Record who pays the Import VAT.
Is this 100% true for all cases?

Can the Russian Customer Pay the Import VAT and reclaim it, per the DDP VAT UNPAID delivery term?

How is this handled?

Cheers
I am not familiar with import VAT rules in Russia.
I could explain how this works in the EU.
In the EU normally the buyer is the one who pays import VAT. This is because the buyer is normally VAT registered in the EU
and therefore is entitled to recover VAT paid to the customs.

So normally a buyer pays import VAT at the time of importation of goods, unless of course the goods go under a suspense regime, which is not the case here.
Then the buyer needs to get a VAT certificate from the customs as evidence that vat was paid.
Once the evidence is in place then the buyer can declare the import VAT in their next Vat return in box 4, if it is uk vat return.


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