Russia's Ministry of Finance has recently issued guidance on the value added tax (VAT) treatment of transfers of intellectual property (IP) by a non-resident legal entity to a legal entity carrying out activity in Russia.
According to the guidance, the transfer of IP rights and rights of use are considered supplies of service in Russia when the purchaser carries out activity in the territory of Russia, and would therefore be subject to VAT. However, the transfer of exclusive rights for inven…