Russia has introduced new value-added tax (VAT) rules pertaining to certain cross-border e-commerce services, and these new rules are expected to have a significant impact on foreign e-commerce service providers.

The new rules, which become effective from January 1, 2019, mean that foreign companies supplying e-commerce services directly to Russian customers (legal entities and individual entrepreneurs), will be obliged to:

(a) register with the Russian tax authorities and

(b) independently calculate and pay VAT on the value of services rendered.

Our handbook, Russia's New VAT Rules, reviews the practical effects of the coming change and suggests some practical takeaways for companies that are pondering action steps ahead of the January 1, 2019 effective date.