Russia Issues Guidance on the VAT Liability of Online Sales of a Nonresidents Goods by a Russian Agent

In a recently published Guidance Letter N 03-07-14/65171, Russia's Ministry of Finance clarifies the value added tax (VAT) liability when goods of a nonresident not registered for VAT are sold through an online shop by a contracted Russian agent. According to the guidance, because the goods are not in Russia when sold and not shipped from inside Russia, they are not considered supplied in Russia and not subject to VAT. However, the commission for the agent resulting from the sales is consider…