The tax registration of diplomatic missions
Diplomatic missions are required to register with the tax authorities of the Russian Federation. For registration, the following documents are required:
- application for registration of a diplomatic mission in the form of 2003Д;
- documents confirming the status of a diplomatic mission (except of the embassies and consulates).
The application forms, documentation requirements, terms of registration are indicated in the Order of the Ministry of Finance of the Russian Federation of 30.09.2010 № 117n «On approval of specifics of registration with the tax authorities of foreign organizations which are not product sharing agreements’ investors or operators».
Date of registration with the tax authority: the date of creation of a diplomatic mission referred to in the application for registration of a diplomatic mission.
Taxes paid by diplomatic missions
In accordance with Russian legislation and under the Vienna Convention on Diplomatic Relations of 18.04.1961, diplomatic missions which hire Russian citizens must comply with the obligations imposed on employers by acting State provisions on the social welfare.
VAT Refund
Value added tax shall be imposed at 0 per cent tax rate on the sale of goods (works, services) which are intended for the official use of foreign diplomatic and equated representations and the personal use of the diplomatic and administrative and technical staff of such representations, including members of their families who reside them, if the legislation of the corresponding foreign state establishes the similar order with respect to diplomatic and equated representations of the Russian Federation, diplomatic and administrative and technical staff of such representations (including members of their families who reside them).
The list of the foreign states shall be defined by a federal body of executive power in the area of foreign affairs together with the Ministry of Finance of the Russian Federation.
Application of taxation at 0 per cent tax rate is carried out by tax authorities through refund of VAT in prices of purchased goods (works, services), upon applications filed on behalf of foreign diplomatic and equated representations which are registered with the tax authorities of the Russian Federation.
Representatives of diplomatic and administrative and technical staff of foreign diplomatic and equated representations, including members of their families who reside them, if they are not citizens of the Russian Federation, or foreign citizens and stateless persons living permanently in the Russian Federation, have the right for VAT refund since the day of receiving diplomatic or service certificates correspondingly.
VAT refund shall processed by way of making transfer to bank accounts indicated in the application which have been opened by foreign diplomatic and equated representations and agencies equated thereto in the authorized banks in the territory of the Russian Federation.