Tax news: trade fee takes effect in Moscow
Starting from July 1, 2015, a trade fee is in effect for Moscow. The types of trade activity and trade fee rates applicable to the specific type of trade are defined in Law No.62 of Moscow “On trade fee” dated December 17, 2014 (hereinafter the “Moscow Trade Fee Law”).
Pursuant to Article 416 of the Tax Code of the Russian Federation, the parties that pay a trade fee must send to the tax authority a notice to be placed on record as a payer of a trade fee (hereinafter the “Notice”) within 5 days from the time the object of the trade fee comes into existence.
In this connection, organizations and individual entrepreneurs who are payers of the trade fee pursuant to the Tax Code and the Moscow Trade Fee Law, must step forward to be placed on record as a payer of the trade fee and send the Notice no later than July 7, 2015.
The Notice must be sent to the tax authority:
- at the location of the real estate facility in the event the trade activity for which the fee is established is being conducted using such real estate facility;
- at the location of the organization (or residence of the individual entrepreneur) in other cases.
Recommended forms of the Notices, as well as the procedure for filling them out and the information to be indicated in the Notices are approved by Letter No.GD-4-3/10036@ of the Federal Tax Service of Russia “On recommended trade fee notice forms” dated June 10, 2015.
The payer of the trade fee can submit the Notice to the tax authority in person or through a representative, by registered mail or in electronic form through the telecommunications channels. The Notice can be provided in hardcopy or in digital form.
The Federal Tax Service of Russia in Letter No.GD-4-3/11188@ “On providing notice for being placed on record as a payer of trade fee” dated June 26, 2015 recommends that for filling out the Notice taxpayers use the Nalogoplatelshchik UL software (version 4.41.4 and later) available on the http://www.nalog.ru web site in the software section.
It should be noted that prior to the mandatory Notice form becoming effective, the taxpayer can submit the Notice in free form, provided the Notice contains the necessary information about the tax object: type of business, trade facility at which this business is conducted (or is ceasing) and specifications (quantity and/or floor area) of the trade facility required for determining the amount of the fee.
Should any questions arise in connection with the above or if you need any additional materials, please contact Dmitry Churin or Elena Lepneva, St. Petersburg Office of Capital Legal Services.
This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.