The Russian Ministry of Finance has drafted amendments to the Tax Code under which the procedure for confirming the right to zero VAT for exporters will be carried out electronically, Kommersant has learned.
Since 2000 the exporters have been providing paper documents to the tax authorities, which with the development of digital technology "has lost its effectiveness", explained the ministry.
The Ministry proposes to introduce the obligation to provide tax authorities with electronic registers containing information both from declarations and contracts from October 1, 2023. The Federal Tax Service will process them automatically and in the event of discrepancies or lack of information may request copies of the documents themselves. Should they not be presented within 30 days, the right to apply zero VAT will be deemed to be unconfirmed. An exception is made for cases where goods are placed under the free customs zone procedure, in which case copies of contracts, declarations and documents confirming the status of a resident of the special economic zone will be required.
The ministry expects that this innovation will reduce the administrative burden on business and simplify the process of confirming the zero rate of VAT for the tax authorities themselves.
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Author: Karina Kamalova