The Federal Tax Service (FTS) of Russia issued clarification on 7 October 2026 regarding the applicable VAT rate for tax agents selling property at court-ordered auctions. The guidance states that when an organization or individual entrepreneur acts as a tax agent for VAT upon the sale of property by court decision, they must apply the VAT rate that the property owner would apply. This interpretation ensures consistency in VAT treatment between the owner and the agent.
Key Takeaways
- Rate Alignment: Tax agents cannot default to the standard 20% rate; they must determine and apply the owner’s specific rate (e.g., 10% for certain goods, 0% for exports).
- Documentation Burden: Agents must obtain and verify the owner’s VAT status and applicable rate before conducting the auction sale.
- Penalty Risk: Incorrect rate application exposes the agent to VAT underpayment penalties and interest under Article 122 of the Tax Code.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement