VAT rate in the Russian Federation

VAT is deciphered as an added taxthe cost. Payers of it are considered as individual entrepreneurs, organizations, and persons who were recognized as VAT payers because of the crossing of goods through the customs of the Russian Federation.

All taxpayers should be registered in the authorized body (tax inspection).

Foreign branches or representative offices(organizations) that have several of their units on the territory of the Russian Federation can independently choose from them one specific one, at the location of which they will register (they will register with the tax inspectorate) and already there will file declarations and pay taxes on all other units that are on Russian territory. Foreign organizations are obliged to inform the tax authorities in writing about their choice of the location of all their organizations that are located on the territory of our country.

VAT rate in the Russian Federation

The VAT rate may not be paid in the case ofexemption from the assessment and payment of the tax, provided that the following condition is met - if for three consecutive months the total amount of the total income from the performed services, works or sale of goods (but excluding tax) does not exceed a total of 2 million rubles.

The following operations are taxed:

- in the transfer of property rights, the performance of any services, works, as well as the sale of goods;

- the transfer of goods on the Russian territory, the provision of services, as well as the performance of any work for personal needs, the costs of which are not deducted when the income tax is calculated;

- when performing construction and installation works for own use;

-If the goods are imported to the customs of the Russian Federation.

The VAT rate does not apply to certain types of transactions that are not recognized as an object of taxation.

When calculating VAT, the tax period is a quarter, this also applies to taxpayers who fulfill the duties of tax agents.

The VAT rate for 2012 remains 0%, 10%, and 18%.

At 0%, goods imported intocustoms regime of export, placed in a free customs zone under the customs regime, as well as services and works that are directly related to the sale and production of such goods. Also, the rate of 0% is levied on the services of transportation of both passengers and luggage, but in the event that the departure points or the destination point of passengers are located outside the territory of the Russian Federation and the carriage is made according to uniform international transport documents.

0% VAT rate is present for works, goods andservices in the field of space activities. It also applies to goods, services or works of official use of foreign diplomatic representations and equated to them; on the construction of ships, which will be registered in the international Russian registry. A complete list of goods subject to VAT at a 0% rate can be found in the first paragraph of Article 164 of the Tax Code of the Russian Federation.

10% VAT rate in Russia applies tofood, children's goods, periodicals, books related to culture, science, education, as well as medical products of both domestic and foreign production. A more complete list at a rate of 10% can be studied in the second paragraph of Art. 164 of the Tax Code of Russia.

In all other cases, a rate of 18% is applied.

The VAT rate of 10% and 18% is applied when importinggoods to Russian customs. In those cases where, according to the tax code, the amount of tax is to be determined by the calculation method, it is determined by its percentage ratio of the tax rate to the tax base taken for 100 and increased by the corresponding amount of the tax rate.