Russian Lower House of Parliament Adopts Draft Bill for VAT on Foreign E-Services

On 26 February 2016, Russia's State Duma (lower house of parliament) adopted a draft bill in its first reading that would impose value added tax (VAT 18%) on e-services supplied by foreign suppliers to Russian customers. The bill includes a change in the place of supply rules for e-services so that the supplies made to Russian consumers would be considered made in Russia and subject to VAT. Foreign suppliers making such supplies would be required to register with the Russian tax authorities, …