State Duma Adopts Law Concerning Procedure of VAT Zero Rate Application for International Transportation

RF State Duma has adopted amendments to article 164 of the RF Tax Code eliminating the contradictions between the norms of subparagraph 9 paragraph 1 article 164 and paragraph 5 article 165 of the RF Tax Code.

From now on zero rate will be applied for all the services on shipping and transportation of goods exported from the territory of the Russian Federation and transportation from the customs territory of the Russian Federation, regardless of the kind of customs regime, it will be a special mark of a customs body that will be important. Earlier the regulation of article 164 of the RF Tax Code was limited to the cases of freights being under the customs regime of export, international customs transit, procedure for internal customs transit enumerated in article 165 of the RF Tax Code.

Kornienko N.Yu. – PhD, Head of the Department of Tax Policy