BISNIS - Russia

Courtesy: American Embassy-Moscow.


IMI: IMPORTS OF PUBLIC TRANSPORT MEANS EXEMPT FROM VAT


1. SUMMARY. THE ORDER OF THE STATE CUSTOMS COMMITTEE OF THE RUSSIAN FEDERATION NO. 248, REGISTERED RECENTLY WITH THE RUSSIAN MINISTRY OF JUSTICE, EXEMPTS FROM THE VAT AND SPECIAL TAX A CONSIDERABLE NUMBER OF ITEMS OF TECHNOLOGICAL EQUIPMENT, PUBLIC TRANSPORT MEANS, AS WELL AS SPARE PARTS FOR THE ABOVE. END SUMMARY.

2. UNLIKE PREVIOUS INSTRUCTIONS, THE NEW ORDER OF THE CUSTOMS COMMITTEE IS MORE SPECIFIC. IT EXEMPTS FROM THE VAT AND SPECIAL TAX (20 PERCENT AND 1.5 PERCENT, RESPECTIVELY) ONLY THE TECHNOLOGICAL EQUIPMENT LISTED IN THE APPENDIX TO THE ORDER. HOWEVER, PROVISION IS ALSO MADE FOR TAX EXEMPTION OF EQUIPMENT NOT INCLUDED IN THE LIST, PROVIDED THE IMPORTER GIVES SUFFICIENT PROOF THAT THE EQUIPMENT BEING IMPORTED IS "TECHNOLOGICAL EQUIPMENT", I.E. DESIGNED TO PRODUCE GOODS OR MEANS OF PRODUCTION.

3. PUBLIC TRANSPORT MEANS ARE EXEMPT FROM THE VAT AND SPECIAL TAX ONLY UNDER THE FOLLOWING CONDITIONS:

(A) PURCHASES OF THE TRANSPORT MEANS MUST BE FINANCED FROM THE FEDERAL BUDGET, THE BUDGETS OF THE FEDERATION ENTITIES, OR MUNICIPAL BUDGETS;

(B) THE TRANSPORT MEANS MUST BE INTENDED FOR TRANSPORTATION OF GENERAL PUBLIC (I.E. EQUALLY ACCESSIBLE BY ALL CITIZENS).

4. LIST OF TRANSPORT MEANS AFFECTED BY THE CURRENT REGULATION:

   HS CODE        DESCRIPTION

   8601       RAILROAD LOCOMOTIVES

   8602       OTHER LOCOMOTIVES; TENDERS

   8603       ELECTRIC/DIESEL MOTOR COACHES, STREET
              CAR COACHES, RAILCARS

   8605       PASSENGER RAILROAD AND STREET CAR
              COACHES, NOT SELF-PROPELLED (TRAILER
              COACHES)

   8702       AUTOMOBILES DESIGNED TO CARRY NOT LESS
              THAN 10 PERSONS (INCLUDING DRIVER)

   880211100  CIVIL HELICOPTERS
   880212100

   880220100  CIVIL AIRPLANES
   880230100
   88024000

   890110     CRUISE SHIPS, TOUR BOATS, AND SIMILAR
              VESSELS DESIGNED PRIMARILY FOR
              TRANSPORTATION OF PASSENGERS; FERRIES OF
              ALL TYPES
(FCS MOSCOW/DRAFTED:VMAXIMOV/APPROVED:CO-RJOHNSON)
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