Russian President Dmitry Medvedev has signed a federal law "On Amending Article 164 of the second part of the Tax Code of the Russian Federation" on rail transportation, the Kremlin press service reports.
The Federal law had been passed by the State Duma on March 17, 2010 and approved by the Federation Council on March 31, 2010.
The law is aimed at improving the provisions of subparagraph 9 of paragraph 1 of Article 164 of the second part of the Tax Code of the Russian Federation, providing the possibility of applying a zero rate of VAT on international rail transportation by Russian carriers.
The application of that tax rate is possible provided the shipping documents are drawn up according to appropriate customs procedures, and include the services costs associated with the carriage or transportation, if such services were provided.
The federal law amendments rules out the possibility of a broader interpretation of subparagraph 9 of paragraph 1 of Article 164 of the second part of the Tax Code, thereby avoiding possible abuses while the VAT payment at the Customs offices.
The Federal law had been passed by the State Duma on March 17, 2010 and approved by the Federation Council on March 31, 2010.
The law is aimed at improving the provisions of subparagraph 9 of paragraph 1 of Article 164 of the second part of the Tax Code of the Russian Federation, providing the possibility of applying a zero rate of VAT on international rail transportation by Russian carriers.
The application of that tax rate is possible provided the shipping documents are drawn up according to appropriate customs procedures, and include the services costs associated with the carriage or transportation, if such services were provided.
The federal law amendments rules out the possibility of a broader interpretation of subparagraph 9 of paragraph 1 of Article 164 of the second part of the Tax Code, thereby avoiding possible abuses while the VAT payment at the Customs offices.