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Employment law

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NDFL agent duties

Foreign employers paying for work done through Russian systems.

  • In force since 2025
  • Register before first payment
  • Five-band scale
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Personal data · 152-FZ

Roskomnadzor registration, localisation and the 24-hour breach rule.

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Tax services → VAT for foreign suppliers
Tax · cross-border · 2026 regime

VAT for foreign suppliers selling into Russia

You don't need a Russian entity to owe Russian VAT. E-services have been in scope since 2017; from 2026 the net covers online goods and marketplaces — at a 22% base rate. We register, file and defend foreign suppliers end to end.

Check your exposure — 2 min → Book a 30-min call
Checkout 🛒
SaaS licence · annual€ 4,800
Delivery to Moscow€ 120
Russian VAT 22%
Pay ₽
e-services · since 2017
goods · new 2026
marketplaces
01 · What's in scope

Three ways the regime reaches you

E-services
since 2017

Software licences, SaaS, hosting, online ads, streaming, apps, content, data. B2C supplies require your own FTS registration; pure B2B usually shifts VAT to the buyer as tax agent.

computed rate 18.03% (2026)
Online goods
new · 2026

Physical goods ordered online by Russian buyers from a foreign seller. Newly in scope: registration and VAT duties now reach the seller directly, even with no Russian presence.

base rate 22%
Marketplaces
new · 2026

Foreign platforms facilitating sales by other sellers to Russian buyers carry their own registration and tax-agent duties — the most complex corner of the regime.

platform tax-agent duties
02 · Where you stand

Three situations, three services

Segment 1 · not registered
You suspect you’re in scope

Selling into Russia without an FTS registration — knowingly or not. The obligation accrues either way; acting first is cheaper than being found.

What we do
Exposure assessment with a written conclusion
FTS registration as a foreign supplier
Catch-up filings structured to minimise penalties
Run the exposure check →
Segment 2 · registered
You’re filing on autopilot

Registered under the old rules, filing quarterly, nobody has re-checked since the 22% change. Most errors we find are silent — wrong rate, wrong base, missed agent supplies.

What we do
Free health-check of your last return
Corrected filings where needed
Ongoing quarterly compliance with a named adviser
Send us your last return →or email it to us directly →
Segment 3 · platforms
You run a marketplace

Facilitating other sellers’ sales to Russian buyers makes the platform itself a taxpayer and tax agent. Scoping who owes what across the chain is the hard part — and our specialty.

What we do
Chain analysis: platform vs seller obligations
Registration and agent-duty setup
Reporting pipelines your engineers can implement
Book a platform call →
03 · How an engagement runs

From first call to filed returns

01
Scoping call

30 minutes, free. We map your flows to the regime and tell you plainly whether there’s an obligation.

02
Written assessment

A fixed-fee conclusion you can rely on — and show to your board, bank or auditor.

03
Registration & catch-up

FTS registration, historic filings if needed, payment mechanics from abroad — handled.

04
Ongoing compliance

Quarterly filings with a named adviser. You see every return before it goes in.

04 · Who does the work

A named adviser, not a ticket queue

AS
Andrey Shaikin
Partner, cross-border VAT

Leads the foreign-supplier VAT practice. Before TaxWell — Big Four indirect-tax teams in Moscow, advising foreign software and e-commerce groups on the Russian regime since the 2017 e-services rules came in.

ex-Big FourCross-border VAT

Your engagement letter names your adviser. Every filing carries their sign-off — you always know who to call.

How this work usually goes

“Suppliers often reach us after years of unregistered sales. Voluntary disclosure, catch-up filings, penalties argued down — for us that's routine work, not a crisis.”

Andrey Shaikin · Partner, cross-border VAT
In English
filings, FTS correspondence and summaries
Fixed fee
agreed before work starts
You approve
every return before it goes in
05 · Common questions

FAQ

Is there a revenue threshold before VAT applies? +

No. Unlike the EU’s distance-selling thresholds, the Russian regime has no de-minimis — the obligation turns on what you supply and where your customer is, not on volume. Volume only affects how much is at stake.

We’ve never registered. What’s the downside of waiting? +

The obligation accrues whether or not you register — unpaid VAT, late-payment interest and penalties build against the supplier. Voluntary registration before the FTS reaches out is materially cheaper than the alternative, and we structure the catch-up filing.

Our Russian business customers withhold VAT as agents. Are we covered? +

Often, yes — for pure B2B e-services the buyer-as-agent mechanism usually removes your registration duty. But it depends on your contracts, invoicing and whether a platform sits in the chain. We confirm it in writing so you can rely on it.

What changed in 2026? +

Two things: the base rate rose to 22% (computed rate 18.03% for e-services), and foreign sellers of physical goods sold online to Russian buyers — and the marketplaces facilitating them — came into scope for registration.

Can you handle this without us opening a Russian entity? +

Yes — the foreign-supplier regime is designed exactly for that: registration with the FTS as a foreign supplier, filings and payments from abroad. If your model eventually needs an entity, that’s a separate conversation we’ll flag early.

Sanctions and payments — can we even pay the tax? +

Paying Russian VAT from abroad has working routes, and we manage the payment mechanics as part of the engagement. It’s a solved problem, not a blocker.

Also without a Russian entity NDFL agent duties for foreign employers → VAT exposure check →

Not sure whether the regime reaches you?

Two minutes, five questions, no email required to see the verdict. If it's amber or red, a named adviser takes it from there.

Run the exposure check → Book a 30-min call

ex-Big Four team · Moscow · since 2018 · © TaxWell & Partners

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