The Belarus Ministry of Taxes and Duties has published guidance to clarify the obligation to calculate and pay VAT (reverse charge) on acquisitions from foreign individual entrepreneurs. As part of tax changes for 2023 (previous coverage), the VAT reverse charge requirement for Belarusian organizations and individual entrepreneurs when acquiring goods, works, and services from a foreign organization not registered for tax in Belarus was extended to acquisitions from a foreign individual entrepreneur not registered for tax in Belarus.

The guidance confirms that requirements apply in respect of acquisitions from foreign individual entrepreneurs with effect from 1 January 2023 for Belarusian organizations, including those under the simplified tax regime, and individual entrepreneurs. The guidance also provides several examples, focusing mainly on the acquisition of services. The examples clarify that where services are purchased from a foreign individual entrepreneur and payment is made before 1 January 2023, the Belarussian buyer is not responsible for VAT. Where payment is made on or after 1 January 2023, the Belarussian buyer is responsible for VAT, even if the purchase/agreement was made before 1 January 2023. However, if an advance payment was made before 1 January 2023 in respect of a purchase/agreement made on or after 1 January 2023, the Belarussian buyer is not responsible for VAT.

Lastly, the guidance clarifies the VAT requirements for residents of the High Technology Park and the Great Stone Industrial Park. This includes that where residents of these parks are eligible for VAT exemptions, they are not subject to the reverse charge requirements for acquisitions from foreign individual entrepreneurs.