I am looking to Export to Russia to a Sister company .
My Finance Department don’t want us to set up a VAT registration in Russia but us to deliver and clear the goods into Russia
Is this legal ?
Is your sister company VAT registered? If they are then, your finance team shoould be able to handle it from there.
Your question requires advice from the professional legal firm. If you contact me at Rufina.Baybulatova@fco.gov.uk, I’ll be able to send you a list of the UK law companies based in Russia who can help with the information.
For foreign companies making taxable supplies in Russia, there may be a statutory obligation to register as a taxpayer. There is no separate registration for VAT purposes in Russia, however the general registration as a taxpayer covers VAT. Once registered, non-resident traders must comply with local filing rules (see below).
Typical situations requiring a Russian VAT registration include:
Where goods are delivered within Russia;
Where goods are imported into Russia;
Export of goods from Russia;
Supply of services where the place of supply is Russia.
If you do not want to register for taxes in Russia and remain as a representative office of a foreign entity no trading can be done by this company. All trading must be done by the parent company. The only goods you can import in this case are office supplies for company use such as furniture, telephones etc. No trading commodities.
However there are ways round this whereby a third party company can make imports on your behalf
If you would like to discuss in more detail here is my email address email@example.com