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Marina Bakcheeva explained new rules for taxation of online services

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The key issues, that were discussed at the Federal Tax Service meeting with representatives of major accounting and consulting companies, law firms as well as business, related to the procedure for taxing non-Russian providers of online services and their registration with Russian tax authorities. Ms. Marina Bakcheeva, Head of the FTS Directorate for Taxation of Legal Entities, gave a detailed overview of the newly adopted legislation on the taxation of online services. The overview was followed by a Q&A session.

Ms. Bakcheeva informed that starting from January 1, 2017 non-Russian providers of online services are required to register with the Federal Tax Service of Russia. To proceed with such registration it is necessary to provide company details and information about the services, provided currently or intended to provide to customers in Russia, by filing an online form. Once the application is approved the company will be assigned an INN (Russian tax ID) as well as granted a password and login to access to the Online Personal Account for Online Service Providers.

The FTS of Russia interacting with non-Russian online service providers will be channeled to the internet where the Online Personal Account for Online Service Providers will become the main point of contact. This service will allow easy filing of tax returns and rapid exchange of documents, outlined Ms. Marina Bakcheeva. She also emphasized that the Federal Tax Service is open for dialog with the prospective taxpayers - non-Russian suppliers of online services.