Tax rate by region Rwanda

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Russia operates a dual-track Value Added Tax (VAT) system administered by the Federal Tax Service (FNS), featuring a standard VAT rate of 22% For non-resident suppliers, compliance obligations depend strictly on the customer type: B2B transactions are automatically shifted to the local Russian buyer via a reverse charge mechanism, whereas foreign B2C providers must register directly with the FNS from their very first transaction. Registered foreign B2C businesses are required to file declarations and remit payments electronically through a dedicated online portal on a quarterly schedule, with submissions due by the 25th day of the month following the reporting period.

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Rwanda

Russia applies a special VAT rate of 20.00% on digital/electronic services provided by foreign suppliers to Russian individuals (B2C). For B2B transactions, the Russian legal entity acts as tax agent — calculating and remitting VAT (reverse charge). 

Official government link: Federal Tax Service of Russia

22.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Before first sale

Online registration possible

Yes 

Local representative needed

Not mandatory

Registration procedure

Foreign B2C digital providers register via FNS dedicated portal lkioreg.nalog.ru — no local representative needed; B2B handled by Russian customer as tax agent

List of digital and electronic services liable for tax

Electronic services delivered via the Internet

Penalties

  • Late filing: 5% of unpaid tax per month (minimum RUB 1,000, maximum 30% of unpaid tax)
  • Moratorium on first-time STS-to-VAT filer penalties 

Registration threshold

No threshold

Filing interval

Quarterly

Filing deadline

25th day of the month following the end of the quarter

E-invoicing requirements

Yes

Record keeping

5 years 

How-To Guides: Rwanda SaaS VAT

Step: 1 Threshold

Effective January 1, 2017, Russia requires non-resident vendors (including online platforms) of digital services to consumers (B2C) in Russia to register for and collect VAT, regardless of the sales amount. 

Effective January 1, 2019, Russia requires non-resident vendors (including online platforms) of digital services to business customers (B2B) in Russia to register for and collect VAT, regardless of the sales amount.

Step: 2 Business Registration

Register online via the “VAT Office for Internet Companies” on the nalog.ru portal. The application must be submitted within 30 days of starting activities.

Step: 3 TIN/VAT Number

Upon registration, businesses shall receive:

  • INN (Taxpayer Identification Number) and KPP (Tax Registration Reason Code).
  • INN Format: 10 digits (e.g., 9909xxxxxx for foreign orgs).

Step: 1 Standard Rate

Standard VAT (IVA) in Russia is 22%. 

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 22 %

 

Step: 3 Reverse Charge (B2B)

• Legal Rule: Technically, foreign suppliers are required to charge VAT to Russian businesses.
• Practical Reality: Due to payment blocks, FTS allows Russian buyers to act as tax agents and withhold the VAT. You should clarify this with your buyer.

Step: 1 Selling B2C

Charge 22% VAT on digital services sold to individuals in Russia. Prices generally must be displayed VAT-inclusive.

Step: 2 Selling B2B

• Standard: Charge 22% VAT if you are registered and can accept payments.
• Sanctions Mode: Do not charge VAT. Allow the Russian buyer to withhold and pay it to the budget (Reverse Charge equivalent).

Step: 3 Invoice Requirements

• B2C: No strict invoice obligation; payment confirmation suffices.

 

• B2B: If charging VAT, issue a standard commercial invoice including:

– Supplier Name, INN & KPP
– Customer Name & INN
– Date & Description
– VAT amount and rate explicitly stated.

Step: 1 Filing Interval

Taxes are filed quarterly.

Step: 2 Filing Deadline

The filing deadline is by the 25th day of the month following the quarter. Payment is du by the 28th day of the month following the quarter (under the Single Tax Account system).

Step: 3 Submission

File electronically via the VAT Office for Internet Companies (LKS) portal. Payments must be made in RUB.

Step: 4 Record Keeping

Records must be kept for 4 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Russia’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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