* No customs declarations / register for EEU export sales, as there is no customs within the EEU.
** If an electronic list of notices on import of goods and payment of indirect taxes was not represented to tax authority, delivery confirmation documents should be presented instead.
These are the requirements for the documents in the special documentary package:
- A sales contract should be concluded with a foreign customer and should be duly executed. Applicable to both EEU and non-EEU export
- A customs declaration should have customs marks – ie export clearance mark and customs confirmation that goods crossed the border of the Russian Federation. Applicable to non – EEU export only.
- The tax authority of the EEU country, to which the goods were exported, should add confirmation details on payment of indirect taxes in the Notice on Import of goods and payment of indirect taxes. Applicable to EEU export only.
This is the complete list of the confirming documents, so the tax authorities have no right to ask for any additional documents to confirm the 0% VAT rate for export sales on filing of the VAT return.
If, during a tax audit of the VAT return, the tax authorities find mistakes or discrepancies in documents provided, additional documents and information could be requested – eg payment documents, transportation documents (waybills), and other documents.
The time period for submission of the VAT return and documentary package to confirm 0% VAT rate is:
- For exports to an EEU country - within 180 days from the date when goods have been shipped for export by the seller.
- For export outside of EEU - within 180 days from the date when goods have been cleared for export by the customs authorities.
Thus, the VAT tax base for export sales and VAT at 0% rate (confirmed export) usually are declared in a VAT return for the period when a taxpayer manages to obtain the full and correct documentary package confirming the export sales.
Accounting for export sales in a foreign currency
If export sales are to be paid in a foreign currency, the VAT tax base in rubles (RR) is calculated at the exchange rate on the date of the actual export shipment, regardless of the payment terms (ie the same approach for pre- or post- paid export sales) and status of confirmation of VAT 0% rate.
Please note, that the 'shipment date' for the purposes of the VAT tax base calculation means the date when:
i. Goods are dispatched from a seller, or
ii. Property right is transferred to a purchaser (whichever is earlier),
not the date of the goods’ customs clearance.
Currency exchange differences on export sales (if any) do not influence the VAT tax base calculation.
EXAMPLE 1
OOO Fantasy has the signed sales contract with a German company LLC Move, dated 1 June 2020 and made an export shipment of auto parts to LLC Move for 15,000 EUR on 29 June 2020, which were cleared by Customs on 20 July 2020.
The customs declaration with clearance mark and confirmation of movement of the goods across the border was received on 5 January 2021.
Exchange rates RR/EUR (notional)
29 June 2020 – 80
20 July 2020 – 82
Required:
Explain when and why OOO Fantasy has the right to declare 0 % VAT for the export sale and calculate the VAT tax base for the respective period.
Answer
1. Period of VAT declaration for the export sale
Output export VAT at 0% rate could be declared in a VAT return for Q1 2021, as:
- 180 days term for obtaining the supporting documentary package starts 21 July 2020 and expires 16 January 2021, as the goods were exported to Germany, a non-EEU country, and
- OOO Fantasy obtained the necessary confirmation documents (valid sales contract and customs declaration with obligatory marks; no other documents are necessary) on 5 January 2021.
2. VAT tax base calculation (RR) for Q1 2021