From January 1, 2019, foreign companies providing services to individuals and legal entities in electronic form on the territory of the Russian Federation will have to register with the Russian tax authorities, calculate and pay VAT on the cost of services rendered (changes in article 174.2 of the tax code).
The services in electronic form include:
- advertising services in the web space;
- transfer of rights to use computer programs;
- placing ads on the Internet for the purchase and sale of goods;
- support of Internet resources;
- storage of information, its remote processing;
- sale of domain names, services of foreign hosting providers.
What services are provided by UCMS Group:
- registration of the foreign company to the inspection of Federal tax service;
- connection electronic reporting SBIS system/ personal account on the website of Federal tax service;
- opening a current account of a foreign company (if necessary);
- preparation and submission of quarterly reports to the tax authority;
- representation of the customer’s interests in the tax inspection;
- consultations on the current tax legislation in terms of the work of foreign companies in the Russian Federation.
For foreign companies that are already registered with the Federal tax service and pay VAT on services for physical services, there is no need to re-register. But such companies from January 1, 2019 must pay VAT and submit reports on services for legal entities.
More information about UCMS Group’s services can be found here.