The Federal Tax Service (FTS) plans to simplify the refund of value added tax (VAT), which is provided to exporters when they export goods to the countries of the Eurasian Economic Union. This was announced by the head of cameral control of the Federal Tax Service, Alexei Kasyanyuk.
Now, representatives of Russian companies applying for zero VAT exemption face a complex and lengthy bureaucratic procedure. They must collect a large package of documents for VAT refund during import and export operations within the EAEU.
“Exporters complain that the EAEU market, which is more attractive in terms of open borders, is more difficult to confirm than exporting to third countries”, emphasized the head of the tax service during a speech at the seminar “Harmonization of tax and customs regulation in the EAEU”.
Kasyanyuk said that the Federal Tax Service considers it possible in the future to automate the process of submitting the necessary documents.
As Irina Odarich, an expert at Kontur.Extern, told RBC, in order to confirm the right to VAT refund, a Russian exporter must collect a large number of documents confirming the fact of an export operation, including the importer’s declaration on the import. and payment of indirect taxes in your country.
When exporting products to countries outside the EAEU, the exporter must file a VAT return, issue a customs declaration for the goods, and submit documents confirming the fact of export in order to file a tax refund.
The zero rate of VAT for exports is a benefit that encourages companies to enter the international market. It implies that the exporter can return from the budget the “input” VAT included in the cost of goods purchased in Russia.
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