The Russian State Duma has passed in the first reading amendments to the Tax Code which simplify confirmation of the zero VAT rate for Russian exporters in international shipments on sea and river vessels.

As explained in the Russian Export Center, now in order to export goods from the territory of the country by river or sea vessels and to receive VAT refund, one should receive a mark "loading is permitted" from the customs authorities. Now they are going to abolish that requirement: exporters will be able to confirm the export of goods on the basis of electronic interaction between the Customs Service (FCS) and the Tax Service (FTS).

If the Federal Tax Service receives from the Customs Service a confirmation of permission for loading - the exporter will receive a VAT refund, if not - the zero rate will be considered as unconfirmed.

Amendments to the Tax Code proposed in the bill of the Russian government are prepared within the framework of work on transformation of business climate in the sphere of goods and services export. If approved, the amendments are expected to enter into force on 1 January 2023.

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Author: Karina Kamalova