For individual buyers, their place of business depends on several factors:

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Yesterday, March 25, the official Internet portal of legal information published a protocol in which the leaders of the member states of the Eurasian Economic Union (EAEU) amended the Treaty on the EAEU of May 29, 2014 in terms of determining the procedure for collecting indirect taxes when providing services in electronic form from December 9, 2022. The protocol was ratified by the Federal Law of the Russian Federation of July 24, 2023 No. 328-FZ algeria whatsapp number database and entered into force on March 4, 2024.

The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and the Russian Federation. The goal of the union is to ensure and facilitate the movement of labor, services, finance and goods within the territory of the member states.

According to the new protocol, if services are provided in electronic form, VAT is not collected by tax authorities between the EAEU countries from individuals and legal entities for work and services on developing software (SW) for any type of electronic devices and databases (DB), as well as software and information products, their adaptation and modification, support (service) and revision.

Legal view

Vladlena Varshavskaya, head of the tax practice at the Varshavsky and Partners law firm, told a ComNews journalist that for buyers who are legal entities or individual entrepreneurs, their place of business is determined on the basis of state registration with two exceptions.

Exception 1: The branch or representative office acquired services for itself and consumed them.

Exception 2: The CEO (management) is permanently located in another state, and the services are consumed there.


place of residence;

location of the bank where the current account is opened;

the buyer's network address used when purchasing the service;

international country code of the telephone number specified when making the purchase.

Vladlena Varshavskaya believes that the first and most important change in the EAEU agreement is the formation of a list of electronic services by the council of its commission and that legislators of the EAEU member states are bringing the very definition of electronic services to a common denominator. "The clearer the regulatory framework, the better for business," said Vladlena Varshavskaya and added that the obligation to submit tax returns and pay VAT to the budget by a foreign organization from an EAEU country has been simplified even if in another state where the electronic service is implemented:

a bank account is opened;

there is real estate or vehicles;

there is a representative office, but it does not perform work or provide services, the place of implementation of which is recognized as the state in which it is located.

Vladlena Varshavskaya explains that in this case the calculation and payment of the corresponding VAT amount is performed by the buyer - a legal entity (or individual entrepreneur) to the budget of the home country, and added that if the electronic service was purchased by the buyer - an individual, then the calculation and payment of VAT to the budget for such a service is not performed at all.

She mentioned that on March 4, 2024, a new procedure for collecting VAT when providing services in electronic form with clearer guidelines came into force - the absence of a person and a material entity. "Of course, the EAEU agreements have priority over national legislation, but in matters of taxation, unfortunately, the practice of interpretation proposed by the Federal Tax Service of Russia prevails," said Vladlena Varshavskaya.