Are there any differences in the procedure for calculating VAT when exporting goods to the EAEU countries and non-CIS countries? What nuances should a taxpayer consider when preparing documents and reporting?
The procedure for calculating VAT on the export of goods does differ depending on whether exports are carried out to the member states of the Eurasian Economic Union (EAEU) or to countries outside the EAEU (non-CIS countries).
Exports to the EAEU countries
The export of goods to the EAEU member states is regulated by the rules of an international treaty, the Treaty on the Eurasian Economic Union, which entered into force in January 2015. The basic rules include the following:
- VAT exemption: According to Article 72 of the EAEU Treaty, the taxation of exports of goods is carried out by the country of origin of the goods, and not by the country of destination. This means that the exporter is exempt from the obligation to pay VAT to the budget of the exporting country, but is obliged to confirm the fact that the goods are sold within the framework of the EAEU.
- Documentary evidence: To confirm the fact of export to the EAEU country, the supplier must submit a number of documents, including an application for the import of goods and payment of indirect taxes (TTK), completed by the buyer and signed by the tax authority of the recipient country. Without such a document, a VAT deduction is not possible.
- Invoicing: Exporters are required to issue invoices in the national currency of the exporting country, applying a zero VAT rate. The tax return must contain special sections to reflect export operations to the EAEU countries.
Export to foreign countries
When exporting goods to third countries (not members of the EAEU), other norms of Russian tax legislation apply.:
- Application of the 0% tax rate: Article 164 of the Tax Code of the Russian Federation provides for the application of a 0% tax rate if the goods are actually exported outside the territory of the Russian Federation. However, it is important to comply with the conditions for granting a preferential rate, such as the submission of appropriate supporting documents.
- Proof of export: In addition to standard documents, additional proof of export is required, such as customs declarations, waybills and other documents confirming the export of goods abroad.
- Special tax regimes: If the importing country belongs to countries with special trade conditions (for example, the CIS countries), there may be separate agreements on the mutual abolition of VAT or special tax regimes.
Important recommendations for the taxpayer:
- Regularly check the updates of the regulations governing the procedure for collecting VAT in the conduct of foreign economic activity.
- Keep records of all necessary documents in a timely manner, as the deadline for submitting declarations is limited by law.
- Consult with a professional accountant or lawyer with experience in international transactions, especially when it comes to complex supply chains.
The differences in the VAT calculation procedure are mainly related to the rules for documenting the transaction and the specifics of the applicable tax regime, depending on the specific trading partner.