EEU: New procedure for VAT on cross-border supply of electronic services

On 9 December 2022, representatives of the EAEU states signed amendments to the "Treaty on the Eurasian Economic Union".

VAT will now be levied at the location of the purchaser when a cross-border purchase of a service in electronic form is made within the EAEU. Previously, the lack of a common approach led to either double taxation or such commercial activities were not subject to VAT in any of the member states.

In addition, taxpayers providing services in electronic form to customers in the EAEU have been given the opportunity to register remotely in a member state as a VAT payer, submit an electronic declaration and pay tax in a simplified format.

On 27 September 2023, a list of electronic services for VAT purposes was also approved. It includes 14 services the provision of which is carried out via information networks.

Source: IS “Paragraph”