The Finance Ministry (MoF) has issued Letter No. 03-07-РЗ/32218 on July 3, 2014 describing the VAT rate applicable to the provision of services of seaborne vessels and combined navigation vessels based on time charter agreements for the reason of freight to or from the region of Russia.
According to article 164 of the Tax Code services, the MoF declared that the transportation of goods being exported out of Russia or imported into Russia by seaborne vessels and combined navigation vessels based on time charter agreements should be subject to 0% VAT rate. In accordance with section 14 of article 165 of the Tax Code, all the documents are required and submitted by the vessel owner to the tax authorities.
