According to a recent announcement from the Russian Federal Tax Service (FTS), foreign suppliers of electronic services and content (e-services) to Russian customers will be subject to value added tax (VAT) effective 1 January 2017. The announcement follows the passage of the legislation for the change (Bill no. 962487-6) in the State Duma (lower house of parliament) on 17 June 2016.
For VAT purposes, e-services include:
- Online software access, including games and databases;
- Online adverti…