On March 30, 2022 the Russian tax authorities (hereinafter – RTA) issued a Clarification Letter № SD-4-3/3807@ explaining the procedure of paying VAT on e-services due to sanctions against the Russian Federation and difficulties with transferring funds from the accounts of foreign banks to the Russian budget.


RTA recommends Russian legal entities (customers) purchasing e-services to withhold and pay VAT to the budget of the Russian Federation. In this case, RTA will not require the foreign company to refund VAT, show it in the VAT return and return the previously accepted refund by the Russian legal entity.


Read more