In-Kind Contributions To Charter Capital / VAT Exemption

(Tax News Reporter Week Ended 19 November 1996)

The amendment to the VAT law of 1 April 1996 restored an exemption for VAT in respect of in-kind contributions to the charter capital of a Russian enterprise, spare parts for technical equipment which qualifies for the exemption itself, spare parts for public transport vehicles, periodical scientific publications and technical assistance under international treaties. This exemption must be applied retro-actively as of 1 January 1996. If VAT and customs duties have been paid, reimbursement can be received without interest, with all transfer costs at the expense of the applicant.

Letter of the State Customs Committee of 15 October 1996 No. 01-15/18363

For further information contact Bauke van der Meer on tel: +7 503 232 5511 fax: +7 503 232 5522 or e-mail directly: Bauke_van_der_Meer@ru.coopers.com or enter a text search 'Coopers & Lybrand' and 'Business Monitor'

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.