2015/06 - Tax Alert: On Trade Levy

The new Moscow Law No. 62 dated December 17, 2014 “On Trade Levy” (the “Moscow Law”) is effective in Moscow as of July 1, 2015.

Mazars in Russia: Tax Alert - June, 2015

We give below highlights on the new tax:

  • Object for taxation: usage of immovable/movable property located in Moscow for trade (e.g. shops, kiosks, etc.). It does not matter whether trade is done as wholesale or retail sales. The definitive criteria is usage of property in trade. There is uncertainty in terms of sales through internet-shops and shipment of goods from warehouse: Article 413 (2) of the Tax Code considers shipping of goods from warehouse as taxable activity, on the other side the Moscow Law does not set special rates for shipment of goods from warehouse. According to clarifications of the Finance Department of Moscow shipping of goods from warehouse is not subject to taxation in Moscow since the special warehouse rates for 2015 are not set by the Moscow Law.
  • Exemption: payers of Unified Agricultural Tax, sale through vending machines, sale on fairs, peddling sale, sale on territory of retail markets.
  • Rate: fixed for each district of Moscow and depends on the area of used property. For example, for shops located in central district of Moscow: 60 KRUB per quarter within 50 sq.m. and plus 50 RUR for each additional sq.m. Under existing terminology in the law regularity of sales does not matter, one time sale may also be subjected to Trade Levy. It is necessary to wait for the clarifications on this matter.
  • Registration: companies leading taxable activity shall submit application for registration as payers of Trade Levy not later than July 7th, 2015 or within 5 working days after appearance of a taxable object.
  • Fine: 10% on incomes received during activity without registration as result of the respective activity, minimum – 40 KRUR.
  • Payment due dates: not later than 25th day after the reporting quarter.
  • Other regions of Russia: Russian Tax Code prescribes introduction of Trade Levy in St. Petersburg and Sevastopol provided that the respective local law is adopted, but the respective local laws in the mentioned cities are not adopted yet.

Learn more in Tax Alert below.

English and Russian versions are available.

We hope that the present overview of changes into Russian legislation will help you in figuring out new rules. In case of any questions or comments, our experts are more than happy to assist you.

Sincerely yours,

Tax and Legal Department of Mazars in Russia

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