The Russian Ministry of Finance issued Guidance Letter No. 03-07-08/22634 on 14 March, 2024, providing clarification on VAT calculations for foreign-made goods sold under contract in Russia.
According to Paragraph 4 of Article 153 of the Russian Tax Code cited in the letter, the VAT tax base is determined at the time of shipment or transfer of goods. This calculation involves converting the cost of goods expressed in foreign currency into rubles using the Bank of Russia exchange rate on the shipment date.
However, if the contract specifies a fixed exchange rate for determining the goods’ value in rubles, Paragraph 4 of Article 153 does not apply.
The guidance aims to ensure consistent VAT application in transactions where the rubles value is not predefined at shipment.
