Russia Holds the Tax Man Accountable for VAT

The Russian Supreme Arbitrazh Court (SAC) has confirmed that tax agents could be liable to pay an unspecified tax should they fail to withhold VAT on cash payments to foreign taxpayers. Previously, tax agents in these situations could be held liable for late payment interest and penalty but not for the tax itself.

The situation changed with the recent publication of the SAC Presidium Resolution No 15483/11 which upheld the tax inspectorate’s action to charge additional VAT, interest and penalty where tax had not been withheld from a cross border payment. It was noted that without tax being withheld it would be impossible to collect the tax from the foreign taxpayer that was not registered with the Russian tax authorities.

Via Russia VAT Tax News | October 2013 Tax Update | Vertex.


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