The Russian Ministry of Finance recently published Letter No. 03-07-08/45864, which clarifies the value added tax (VAT) treatment of digital advertising services supplied by a foreign legal entity to a Russian legal entity, as well as the deductibility of the service fees. With regard to the VAT treatment, the letter notes that digital services are deemed to be supplied in Russia, and subject to VAT, if the buyer is resident in Russia. In this case, the buyer of the service is to act as the t…