Russia Clarifies VAT Obligations for Payments in a Foreign Currency for Services Provided by a Non-Resident not Registered for Tax

The Russian Ministry of Finance recently published Letter No. 03-07-08/10658, which clarifies the value added tax (VAT) obligations of a Russian legal entity when making payments in a foreign currency for services provided by a non-resident that is not carrying out activities in Russia nor registered for tax purposes in Russia. According to the letter, in such case, the place of supply is considered to be in Russia and the Russian legal entity must act as the tax agent and calculate and remit…