Putin signs law to simplify seafood export VAT refund

November 29, 2020 22:54

Russian President Vladimir Putin has signed a law simplifying the process of VAT refund to Russian fishing companies when exporting fish caught in the Exclusive Economic Zone of the Russian Federation, reports Megafishnet.com.

According to RIA Novosti, the document signed on November 23, 2020, specifies the place of sale of water bioresources harvested in the Exclusive Economic Zone of the Russian Federation and goods produced from them. Namely, the place of their sale is recognized as the territory of the Russian Federation if they are located in its Exclusive Economic Zone at the start of shipment and transportation.

The changes will allow Russian fishing companies to apply a zero VAT rate and tax deductions.

In accordance with the current legislation, Russian fishermen are entitled to a refund of 10% VAT when exporting their products. However, the Federal Tax Service (FTS) in 2019 began to refuse to refund tax, referring to the fact that the Exclusive Economic Zone does not belong to the territory of Russian taxation.

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