Actuality October, 11, 2007

Services of program development for electronic computers, computers and databases, rendered by Russian organization to the foreign partner, are not acknowledged as the object of VAT imposition in Russian Federation (RF). About this informs the Ministry of Finance in the letter of September, 12, 2007 # 03-07-08/255.

Financiers specified that if a buyer does not carry out activity on the territory of Russia,

then the place of realization of works (services) for the purpose of VAT assessment according to paragraph (1) (4) and paragraph (1.1) (4) of section (148) of tax code

of RF is not acknowledged by the territory

of Russia.

The representatives of main financial department reminded that the list of documents, confirming the place of works’ realization (provision of services), is set by the norms of paragraph (4) of section (148) of tax code.

They, in particular,

include the corresponding contract and o ther documents, that, naturally, must be designed properly.