Russia: invented a new way to simplify sales abroad

The State Duma made a bill of the Government of Russia, which implies the simplification of the procedure for the application of zero value added tax (VAT) for exporting companies. The new initiative suggests that for documentary confirmation of the right to zero rate, the marks of the customs authorities in the export of goods by sea or the river, writes “Kommersant”.

This way of simplifying export procedures is part of the “Road Card” of the Government for the Transformation of Business Climate. Now, for confirmation of the right to zero VAT, in supply abroad, marks are needed on paper documentation – confirmation of the export of goods with reference to unloading or loading. It is necessary to provide a copy of the order for shipment of goods with the mark “Loading allowed” from the Russian Customs Authority.

The proposed changes for business are fundamental, although they look technical. Chairman of the Board of Directors of Sovfracht JSC (Transport Holding, which carries out maritime and river transportation of goods – approx. “Tape.ru”) Dmitry Purim explained that the amendments would affect all exporters – both producers of goods and carriers. According to him, in 10 percent cases, tax may not accept documents that enterprises are submitted to confirm the right to zero VAT rate. The refusal is justified, among other things, not enough seals confirming the fact of exports. Therefore, the process of returning tax, which business paid contractors and subcontractors is delayed, and companies face a cash rupture. Therefore, I explained Purim, “Paper Volokita affects the cost of production and reduces the competitiveness of Russian goods on the foreign market.”

In June, the Association of Muta Mutaers (ADM) asked Rosselkhoznadzor to simplify the design of veterinary documents for exports, since it took up to 22 days to issue securities. The reason was the critical situation with the loading of refrigeration facilities, which arose in the Russian Far East due to restrictions on the supply of fish to China.

/Media reports.