From July 1, 2021, companies in Russia should for B2B traceable goods issue and receive e-invoices
From July 1, 2021, companies in Russia should for B2B traceable goods issue and receive e-invoices.
B2B e-invoicing in Russia is since 2012 voluntary. The President of the Russian Federation signed on November 9, 2020the Federal Law No. 371-FZ. The Russian Tax Code introduces new mandatory e-invoicing for taxpayers dealing with traceable goods on July 1, 2021.
The traceability system monitors movements of specific goods imported into Russia and the Eurasian Economic Union (EAEU). At the moment of import, each good is assigned a batch registration number (BRN). That number remains crucial during all transaction stages.
The goods included in the list of traceable goods are in sectors such as the retail, pharmaceutical, and automotive industries and include refrigeration and freezing equipment, industrial trucks, washing and drying machines, monitors and projector equipment, integrated electronic circuits and elements, baby strollers and child safety seats.
Companies should set up solid internal processes and IT systems, including adding BRNs to VAT invoices and other primary accounting documents, to prepare and file reporting according to the Russian tax requirements. Companies have to provide VAT invoices during a tax audit. Underpayment of VAT or customs duties can result in tax assessments increased with tax penalties.
Russia has an aim to build a national track and trace system. Russia aims to have 95% of invoices and 70% of transport and goods waybills issued in an electronic format.