Transactions completed before the new VAT law entered into force on 9 April 1996 are subject to the old rules for levying VAT and the old exemptions. Input VAT incurred until 9 April 1996 is recoverable under the old regime, with the exception of VAT incurred on the purchase of tangible and intangible assets which are entered into the books of an enterprise after 1 January 1996. In this situation it seems that the input VAT remaining after the first quarter of 1996 can be fully offset in the next accounting period.
(Telegram of the Ministry of Finance and the State Tax Service of 18 April 1996 No. VZ-6-03/260 and 260)
EXCISE DUTIES / TRANSITIONAL RULES
According to the amended Law on Excise Duties, new exemptions apply retroactively to a number of goods if these were shipped after 1 February 1996 but were not yet paid for as at the date of official publication of the law, 13 March 1996. Companies producing or storing vodka or other liquors based on alcohol from natural products can receive a deferment from paying excise duties until 1 May 1996.
(Letter of the Ministry of Finance and the State Tax Service of 18 March 1996)
TAX DEBTS / CONFISCATION OF PROPERTY
The State Tax Service, the Ministry of Finance and the Tax Police will continue applying a 1994 Regulation on the confiscation of property from taxpayers for tax arrears to the extent that it does not contradict Presidential Decree No. 199 of 14 February 1996 (see TNR of 21 February 1996), pending changes in other relevant legislation.
(Letter of the State Tax Service of 29 February 1996 No. VZ-6-10/19n)
PERSONAL INCOME TAX / IMMIGRATION REQUIREMENTS / EXPATRIATES
Foreigners working in Russia should generally register with the tax authorities and comply with the relevant immigration and labour legislation. A case has recently been reported of local tax authorities not only inquiring into the tax status of foreigners working in Russia but also into their immigration status.
Legal developments are usually reported in Tax News Reporter on official publication. This may be long after the law is issued.
This publication is intended for public guidance only and should not form the basis for specific decisions.
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