Invoicing and Tax regulation in Russia
Invoicing Regulation in Russia
In Russia, all invoices must be issued in Russian language and must contain specific mandatory details such as supplier's name, buyer's name, invoice amount, tax rate, and other details. It is mandatory for all B2B, B2C, and B2G transactions. The invoices must be saved for a period of five years.
Real-Time Reporting / Fiscalization in Russia
In Russia, real-time transaction reporting, or fiscalization is required by law. VAT registered businesses and individuals need to use a fiscal device to record and transmit data to tax authorities for each retail transaction, whether B2B, B2C, or B2G. The collected data is monitored and controlled by the Russian Federal Tax Service (FTS).
E-Invoicing in Russia
E-invoicing is allowed in Russia but is not mandatory. Electronic invoices are equivalent to paper ones if the invoice contains all of the mandatory mentions and if it is signed with an electronic digital signature. However, transitioning to e-invoicing can help businesses reduce administrative costs and ensure faster invoice processing.
VAT/GST/Tax Compliance in Russia
The standard VAT rate in Russia is 20%, while a reduced rate of 10% applies to certain goods and services. Businesses are required to register for VAT if their taxable turnover exceeds RUB 2 million in a three-month period. Once registered, companies must file VAT returns on a quarterly basis. VAT compliance is mandatory, whether the business transactions are B2B, B2C, or B2G.