There are three main rates of VAT depending on the nature of the supply.
The 0% rate applies, in particular, to the sale of goods exported outside the Russian Federation. The 0% rate also applies to a list of services which includes, in particular:
• Transportation of passengers and baggage where either the point of departure or destination is outside Russia
• International transportation of goods, where either the point of departure or destination is located outside Russia, including certain freight forwarding services
• Certain pipeline transportation services with respect to exported and/or imported goods, as well as certain services relating to the arrangement of pipeline transportation
• Certain cross border railway transportation services and services relating to such transportation, including some types of provision of railway rolling stock and/or containers
• Certain services rendered at sea and river ports relating to the transhipment and storage of goods moved across the Russian border as well as certain services rendered by inland waterway transportation companies with respect to exported goods
• Processing services rendered with respect to goods placed under the customs processing regime
• Transportation of exported or imported goods by sea vessels and mixed navigation vessels performed on the basis of time charter agreements
In order to confirm the 0% rate, a set of documents is prescribed for each type of service. Moreover, the 0% VAT rate applies to supplies of goods (work, services) and property rights to the following organisations:
• FIFA and subsidiaries of FIFA, as well as supplies of goods (work, services) and property rights in connection with organization of events to confederations, the Organising Committee for the 2018 FIFA World Cup Russia, subsidiaries of the Organising Committee for the 2018 FIFA World Cup Russia, national football associations, the Russian football union, producers of FIFA media information, FIFA suppliers of goods (work, services) mentioned in the Federal Law "On the preparation and holding of the 2018 FIFA World Cup Russia (hereinafter "the FIFA World Cup”) and the introduction of amendments to certain legislative acts of the Russian Federation”
• The Foreign 2014 Olympic and 2014 Para-Olympic Games organisers, marketing partners of the International Olympic Commitee and some other organizations mentioned in the relevant federal laws
Particular rules on the application of the 0% VAT rate to the above suppliers in connection with the FIFA World Cup and the Olympic Games have been established by the Russian Government.
The 10% rate applies to certain foods, children's goods, medical and pharmaceutical products, pedigree livestock, and certain books and periodicals.
The 18% rate applies to all other taxable sales of goods, work and services.
There are also computed VAT rates (10/110 and 18/118) applied to certain transactions such as the receipt of advance payments and other payments connected with settlements for supplies, as well as to certain types of transfer of property rights.