The Ministry of Finance clarified whether it is necessary to pay VAT if the Russian organization provides consulting and legal services to a foreign company.
In a letter dated 05.17.2019 No. 03-07-08 / 35644, the Ministry notes that only those services that are provided in Russia are subject to VAT.
The procedure for determining the place of sale of services for VAT purposes is established by article 148 of the Tax Code of the Russian Federation. This norm establishes that the place of sale of consulting and legal services is determined by the place of business of the purchaser of services.
Thus, if the buyer of consulting and legal services is a foreign firm, Russia is not recognized as the place of sale of such services.
Accordingly, these services are not taxed in Russia, even if the foreign firm that buys them is registered with the Federal Tax Service of the Russian Federation in connection with the provision of electronic services to Russian users.