Federal Law No. 225-FZ on Amendments to Part Two of the Tax Code of the Russian Federation dated 30 June 2016 enters into force on 1 August 2016. According to the law, a VAT exemption is granted on import of raw materials and components of devices for which no analogues are manufactured in Russia and which are intended for the manufacturing of VAT exempt medical products. The list of such medical products is currently approved by RF Government Resolution No. 1042 of 30 September 2015.

This law sets up new rules for raw materials and components for assembly of medical products: on the one hand, the VAT exemption applies to any types of components, which need not be on the List (Resolution 1042 exempts only raw materials and supplies for making prosthetic and orthopedic appliances from VAT); however, on the other hand, this exemption will apply only to those components for which no analogues are manufactured in Russia.

Entitlement to VAT exemption needs to be confirmed by submitting to the customs authority a document evidencing: (1) the intended use of the raw materials and components and (2) that there are no Russian analogues. Such a document will be issued by the Ministry of Industry and Trade of Russia.

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.