The Federal Tax Service of the Russian Federation has explained how the VAT deduction is applied by representative offices of Russian companies operating abroad. According to the norms of the Russian tax legislation, namely Article 171 of the Tax Code of the Russian Federation, VAT amounts can be deducted in the following cases:
- when buying goods or services on the territory of Russia;
- when importing goods to the territory of Russia with a certain customs procedure;
- when importing goods transported across the Russian border without customs procedure.
Meanwhile, the tax service explains that a Russian company that buys goods or services for its representative office located in a foreign jurisdiction can claim the corresponding VAT amounts for deduction. In this case, the tax return must be submitted by the taxpayer – a Russian company.