Belarusian-Russian Protocol Concerning Indirect Tax Levy Procedure Came into Force

Press service of the Ministry on taxes-and-duties has informed the correspondent of www.soyuz.by of the fact that Belarusian-Russian intergovernmental protocol concerning the procedure of indirect tax levy when executing the work or rendering services came into force on May 1st, 2008. The document defines the procedure of indirect tax levy when executing the work or rendering services on the territories of Russia and Belarus.

Press service of the Ministry on taxes-and-duties has informed the correspondent of www.soyuz.by of the fact that Belarusian-Russian intergovernmental protocol concerning the procedure of indirect tax levy when executing the work or rendering services came into force on May 1^st, 2008. The document defines the procedure of indirect tax levy when executing the work or rendering services on the territories of Russia and Belarus.

Article 2 of the Protocol determines that VAT for executing the work or rendering services is levied in that state the territory of which is recognized as the place of the work and services implementation.

Concerning the work (services) executed (provided) for Russian contractors as well as concerning the work (services) bought from Russian contractors, with the purpose of VAT calculation the place of the work (services) implementation is determined as provided by the protocol.

Realization of the work (services) intended for maintenance (modernization, re-equipment) of the vehicles (including parts of vehicles) which are imported from the territory of the Russian Federation onto the territory of the Republic of Belarus for the above-named purposes is taxed according to zero rate.

The protocol which is the part of the intergovernmental agreement on the procedure of indirect tax levy in reciprocal trade was signed in Minsk in March 2007 and ratified in Belarus in June 2007. Russian party finished ratification procedures in April 2008.