Foreigners will be able to receive electronic receipts tax-free

The State Duma of the Russian Federation approved a bill allowing trading companies to electronically generate a document to compensate for the amount of value-added tax (VAT) when selling goods to foreigners and confirming the export of such goods.

The system will establish the procedure for electronic document circulation between trading companies selling goods to foreigners and taxpayers providing services to compensate the amount of tax to individuals. The participants of this procedure will exchange electronic receipts to compensate for the amount of VAT, data on the obligatory marks of the Russian customs authorities, as well as information on the compensated amounts.

The tax-free system was launched in Russia in April 2018. Citizens of foreign states that are not members of the Eurasian Economic Union can return VAT for goods purchased in Russia. For this reason, a foreigner needs to purchase at least 10 000 RUR worth of goods within one day and issue a receipt for them.

Now you can use the service on the territory of 16 constituent entities of Russia. In the future, the tax free system will be distributed throughout the country.