ANNOUNCEMENT 28 Feb 2019

On 28 February 2019, the Russian Government expanded the list of equipment not produced in Russia and, hence, eligible for VAT-free imports with two models of equipment. 

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Government of the Russian Federation. Resolution Dated February 28, 2019 N 202. About Changes in the List of Technological Equipment (Including Components and Spare Parts to It), Which Analogues Are Not Made in the Russian Federation, Importion of Which to the Territory of the Russian Federation is Not Subject to Tax on Value Added. http://www.consultant.ru/document/cons_doc_LAW_319400/

Inception date: 12 Mar 2019 | Removal date: open ended
Still in force

Import incentive

On 28 February 2019, the Russian Government amended the list of equipment not produced in Russia and eligible for VAT-free imports with two equipment pieces.

  1. Tariff line 8438 80 990 0 was expanded to include the "device OFP 168 / OFP 336 for the processing of varieties of oily fish and fish waste into fish meal with a system for obtaining fish oil and packing fish meal in bags, manufacturer A and S Thai Works Co., Ltd."
  2. Tariff line 8439 10 000 9 was expanded to include "nitrocellulose production line, manufacturer Bowas-Induplan Chemie Ges.m.b.H., Austria."

Since customs officials are instructed to refer both to the tariff line and product description when applying the VAT waiver, the List functions as a positive list (only listed pieces of equipment classify). Therefore, these amendments should be seen as an expansion of the scope of the waiver, albeit a firm-specific one.

Although Russia is in a customs union with the EEU states, the measure is introduced by the Russian Government and only applies to imports into Russia. 

The legislation does not mention the effective date of implementation, but the most widely used legal database Consultant.Ru lists 12 March 2019 as the inception date. 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 12 Mar 2019 | Removal date: open ended
Still in force

Tax or social insurance relief

On 28 February 2019, the Russian Government amended the list of equipment not produced in Russia and eligible for VAT-free imports. Besides being an import incentive benefitting foreign manufacturers of listed equipment, this measure also constitutes a VAT relief for local manufacturers using the listed equipment. Hence, this measure is also classified as tax relief for domestic manufacturers that discriminates against competing foreign manufacturers. 

 

 
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