Government Approved List of Technological Equipment Exempt from Import VAT

01.06.2009

Resolution by the RF Government No. 372 of 30.04.2009 “On approval of the list of technological equipment (inclusive of components and spare parts thereto) with no analogues manufactured in the Russian Federation, imports of which into the customs territory of the Russian Federation is exempt from value added tax”

It took the Government four months to implement a new provision of the Tax Code regarding VAT exemption of imported equipment with no analogues offered by Russian manufacturers.

The list lacks metal-working machinery (it includes special machinery for aircraft industry only) and agricultural machines although other types of equipment are represented extensively – ranging from gas turbines to medical sterilizers. Practically the whole range of printing equipment has been exempted from VAT.

The new exemption will supersede the earlier one which exempted from VAT any Technological equipment imported as contribution to share capital of Russian companies. Therefore now VAT is payable on equipment outside the list enacted by the Government which is imported as contribution to share capital.

The new exemption will take effect on July 1, i.e. on the 1st day of the quarter following the quarter in which the resolution was published.