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Tax Code Of The Russian Federation

PART TWO NO. 117-FZ OF AUGUST 5, 2000
(with the Amendments and Additions of March 30, July 9, 1999, January 2, 2000, December 29, 2000, May 30, August 6, 7, 8, November
27, 29, December 28, 29, 30, 31, 2001, May 29, July 24, 25, December
24, 27, 31, 2002, May 6, 22, 28, June 6, 23, 30, July 7, November 11, December 8, 23, 2003)
Adopted by the State Duma on July 19, 2000
Approved by the Federation Council on July 26, 2000

Part II
Section 8
Chapter 21
Value-Added Tax
Chapter 22
Excise Taxes
Chapter 23
Personal Income Tax
Chapter 24
Uniform Social Tax (the Contribution)
Chapter 25
Tax on Organisations' Profit
Chapter 25.1
Fees for the Use of Fauna Objects and for the Use of AquaticBiological Resource Objects
Chapter 26
The Mineral Resource Recovery Tax

Chapter 21. Value-Added Tax


Article 143. Taxpayers


 The following shall be recognised as taxpayers for the purposes of value added tax (hereinafter referred to as "taxpayers"):
  -  organizations;
  -  individual entrepreneurs;
  -  persons recognized as taxpayers of the value added tax (further in the present Chapter - tax) in connection with the movement of goods across the customs border of the Russian Federation defined according to the Customs Code of the Russian Federation.

Article 144. Registration as a Taxpayer


 1. Taxpayers are subject to a compulsory registration with the tax body in compliance with Articles 83, 84 of the present Code and with due regard to the peculiarities stipulated by the present chapter.
 2. Foreign organisations are entitled to be registered with the tax bodies as taxpayers at the location of their permanent establishments in the Russian Federation. Registration as a taxpayer shall be effected by a tax body on a written application of a foreign organisation.

Article 145. Release from the Taxpayer Obligations


 1. Organizations and individual businessmen have the right to relief from performing a taxpayer's duties relating to tax accrual and payment thereof (hereinafter referred to as relief), if the sum of proceeds from the sale of goods (works, services) of such organizations or individual businessmen less the tax has not exceeded as aggregate 1,000,000 roubles for the three preceding calendar months in a row.
 2. The provision of this article shall not extend to the organizations and individual businessmen selling excisable goods within three preceding calendar months.
 3. The relief in compliance with Item 1 of this Article shall not apply insomuch as it concerns the duties arising in connection with the importation to the customs territory of the Russian Federation of goods taxable under Subitem 4 of Item 1 of Article 146 of this Code.
 Persons contending for being relieved from a taxpayer's duties shall file a relevant application in writing and the documents, indicated in Item 6 of this Article, which support their right to such a relief, with the tax body at the place where they are registered.
 Said application and documents shall be filed on the 20th day of the month at latest beginning from which these persons contend for being relieved from a taxpayer's duties.
 The form of an application for relief from a taxpayer's duties shall be subject to endorsement by the Ministry of Taxation of the Russian Federation.
 4. The organizations and individual businessmen which have filed with the tax body an application for relief from a taxpayer's duties (or for extending the term of relief) may not reject this relief prior to the expiry of 12 calendar months in a row, safe for the cases when they forfeit the right to relief under Item 5 of this Article.
 Upon the expiration of 12 calendar months and on the 20th day of the next following month at latest the organizations and individual businessmen, which have been relieved from a taxpayer's duties, shall file with the tax bodies the following:
 the documents confirming that within said term of relief the sum of proceeds from the sale of goods (works, services), calculated in compliance with Item 1 of this Article, less the tax, did not exceed 1,000,000 roubles as an aggregate for each three calendar months in a row;
 an application for enjoying the right to extend the term of relief to the next 12 calendar months or for the refusal to enjoy such right.
 5. If within the period, in which organizations and individual businessmen were relieved from a taxpayer's duties, proceeds from the sale of goods (works, services) less the tax for each three calendar month in a row exceeds one million roubles or if a taxpayer have sold excisable goods, the taxpayers, as of the first day of the month when such excess took place or the excisable goods and (or) excisable raw materials were sold, and to the end of the relief term, shall cease to enjoy the right to the relief.
 The sum of the tax for the month in which said limit was exceeded or excisable goods and (or) excisable raw materials were sold shall be recovered and paid to the budget in the established manner.
 Should a taxpayer fail to submit the documents specified in Item 4 of this Article (or should the taxpayer submit documents containing unreliable information), as well as should the tax bodies find that the taxpayer has not observed the limitations established by this Item and Items 1 and 4 of this Article, the sum of tax shall be recovered and paid to the budget in the established manner, with a relevant tax sanction and penalty being collected from the taxpayer.
 6. The documents confirming in compliance with Items 3 and 4 of this Article the right to relief (to extension of the relief term) shall be as follows:
  -  an extract from the balance sheet (to be submitted by organizations);
  -  an extract from the sales book;
  -  an extract from the book of receipts and expenditures and of economic operations (to be submitted by individual businessmen);
  -  a copy of the register of received and issued invoices.
 7. In the cases provided for by Items 3 and 4 of this Article a taxpayer shall be entitled to send to the tax body the application and the documents by registered mail. In such case the six day, as of the date of sending the registered letter, shall be regarded as the date of their submission.
 8. The amounts of the tax to be deducted by taxpayers in compliance with Articles 171 and 172 of this Code prior to their enjoying the right to relief under this Article with regard to goods (works, services), including fixed assets and intangible assets acquired for the purpose of making operations which are regarded as units of taxation in compliance with this Article but have not been used for said operations, after sending by the taxpayers an application for enjoying the right of relief shall be recovered in the last tax period prior to sending an application for enjoying the right to relief by way of reducing tax deductions.
 The amounts of the tax paid in respect of the goods (works, services) acquired by taxpayers, who have lost the right to relief in compliance with this Article, prior to the loss of said right and used by the taxpayers after their loss of this right in operations regarded as units of taxation in compliance with this Article, shall be deducted in the procedure established by Articles 171 and 172 of this Code.".

Article 146. The Item of Taxation


 1. The following operations shall be defined as items of taxation:
  1)  sale of goods (works, services) on the territory of the Russian Federation, including the sale of subjects of a pledge and transfer of goods (results of performed works, rendered services) under a compensation agreement or a novation, as well as the transfer of property rights.
 For the purposes of the present Chapter, the transfer of title to goods, results of performed works, rendered services on gratuitous basis shall be redefined as sale of goods (works, services);
  2)  the transfer of goods (performance of works, provision of services) on the territory of the Russian Federation for own purposes in respect of which expenses are not accepted for offset (in particular, as depreciation deductions) when the tax on the profit of organisations is being calculated;
  3)  performance of construction and erection works for own consumption;
  4)  importation of goods to the customs territory of the Russian Federation.
 2. For the purposes of the present Chapter, the following shall not be recognized as a unit of taxation:
  1)  operations listed in Item 3 of Article 39 of the present Code;
  2)  transfer on a gratuitous basis of apartment houses, nursery schools, clubs, sanatoriums and other facilities of social and cultural housing purposes and also roads, electrical grids, substations, gas networks, water intake facilities and other similar objects to public authorities and bodies of local self-government (or by decision of said bodies to specialized organizations operating the aforesaid facilities as per their purpose);
  3)  transfer of property of the state and municipal enterprises redeemed by way of privatization;
  4)  performance of works (rendering of services) to bodies which are included in the system of public authorities and bodies of local self-government within the framework of execution of exceptional authority in a specific area of activities assigned to them, if the mandatory nature of executing said works (rendering of services) is stipulated by legislation of the Russian Federation, legislation of subjects of the Russian Federation, or laws of bodies of local self-government;
  5)  transfer on a gratuitous basis of fixed assets to public authorities and government agencies and bodies of local self-government, and also to budgetary establishments, state and municipal unitary enterprises.

Article 147. The Place of Sale of Goods


 For the purposes of the present Chapter, the territory of the Russian Federation shall be recognized as the place of sale of goods if one or several of the below circumstances exist:
  -  the goods are located on the territory of the Russian Federation and are not shipped, and are not transported;
  -  the goods at the time of beginning of the shipment or transportation are located on the territory of the Russian Federation;

Article 148. The Place of Sale of Works (Services)


 1. For the purposes of the present Chapter the territory of the Russian Federation shall be recognized as the place of sale of works (services) performed if:
  1)  works (services) are connected directly to real estate (except for aircraft, sea ships and internal navigation ships and also spacecraft) located on the territory of the Russian Federation. Such works (services), in particular, shall include civil engineering, assembly, construction and erection, repair, restoration works, the planting of trees and shrubs;
  2)  works (services) connected to personal property located on the territory of the Russian Federation;
  3)  services actually performed on the territory of the Russian Federation in the area of culture, arts, education, physical culture, tourism, recreation and sports;
  4)  a buyer of works (services) operates on the territory of the Russian Federation.
 The place of activity of the buyer shall be considered the territory of the Russian Federation if the buyer of works (services) specified in the present Subitems is actually located on the territory of the Russian Federation on the basis of state registration of an organization or individual entrepreneur, and if such is not available - on the basis of the place indicated in constituent instruments of the organization, the place of management of the organization, seat of its permanent executive board, location of its permanent representation (if the services are rendered through this permanent representation), place of residence of the natural person. The provision of the present Subitem shall apply to:
  -  the transfer to property or assignment of patents, licenses, trademarks, copyrights or other performance of works (provision of services) rights;
  -  rendering consulting, legal, accounting, engineering, advertising, education services, services in the processing of information, and also in the performance of research and development works. Engineering services shall include engineering and consulting services in the development of a production process and sale of products (works, services), preparation of civil engineering and operation of facilities in industry, infrastructure, agricultural and other objects, predesign and design services (drafting of feasibility studies, the design engineering and other similar services). Services in the processing of information shall include services in the collection, generalization and systematization of information files and furnishing the user with results of this information processing;
  -  leasing of personnel if the personnel works at the place of business activity of the buyer;
  -  letting out movable property, except for ground motor vehicles;
  -  rendering services of an agent who on behalf of the principal participant of the contract would hire a person (organization or natural person) to render services stipulated by the present Subitem;
  -  rendering services directly at Russian airports and in the airspace of the Russian Federation on board service aircraft, including aeronavigation service;
  -  performing works (rendering services including repair ones) in respect of sea ships and internal navigation vessels during mooring periods (all kinds of harbor fees, services of ships of port fleet), as well as those performed during pilotage
  5)  activity of organizations or individual entrepreneurs that perform works (render services) shall be performed on the territory of the Russian Federation (as regards the performance of works (rendering of services) not stipulated by Subitems 1 - 4 of Item 1 of the present Article).
 2. The territory of the Russian Federation shall be considered the place of activity of an organization or individual entrepreneur performing works (rendering services) not stipulated by Subitems 1 - 4 of Item 1 of the present Article if this organization or individual entrepreneur is actually present on the territory of the Russian Federation on the basis of state registration, and if such is not available - on the basis of the place stated in constituent documents of the organization, place of management of the organization, seat of the organization's permanent executive board, location of its permanent representation in the Russian Federation (if the works were performed (the services were rendered) through this permanent representation) or place of residence of the natural person.
 For the purposes of the present Chapter, as the place of activity performed by the organization or individual entrepreneur who renders services in letting out aircraft, sea ships or internal navigation vessels" shall be replaced by the words "let use aircraft, sea ships or internal navigation vessels under lease contracts (time chartering) with a crew, and also services in carriage, shall not be recognized the territory of the Russian Federation where the carriage is effected between ports situated outside the territory of the Russian Federation.
 3. If the sale of works (services) is of an auxiliary nature as regards the sale of principal works (services), the place of sale of the principal works (services) shall be recognized as the place of such an auxiliary sale.
 4. Documents confirming the place of performance of works (of rendering of services) are:
  1)  a contract with foreign or Russian persons;
  2)  documents confirming the fact of performance of works (of rendering of services).

Article 149. Operations Which Are Not Taxable (Exempted from Taxation)


 1. Not subject to taxation (exempt from taxation) letting out premises by a lessor on the territory of the Russian Federation to foreign subjects or to organizations accredited in the Russian Federation.
 The provisions of Paragraph One of this Item shall apply when by law of a corresponding foreign state a similar procedure is established concerning citizens of the Russian Federation and Russian organizations accredited in this foreign state, or if such a standard is stipulated by an international treaty (agreement) of the Russian Federation. The list of foreign states in relation to whose citizens and (or) whose organizations are applied the norms of the present Item shall be defined by the federal body of executive authorities regulating relations of the Russian Federation with foreign states and international organizations jointly with the Ministry of Taxation of the Russian Federation.
 2. Not subject to taxation (tax exempt) shall be the sale (and also transfer, performance, rendering for own needs) on the territory of the Russian Federation of:
  1)  the following domestic and foreign-made medical goods as per under the list approved by the Government of the Russian Federation:
  -  major and vitally essential medical equipment;
  -  artificial limbs and orthopedic articles, raw materials for their manufacture and semi-finished articles for the above;
  -  technical facilities, including motor vehicles, materials which can be used only for disability prevention or rehabilitation of invalids;
  -  glasses (except for sun glasses), lenses and rims for glasses (except sunglasses);
  2)  medical services rendered by medical organizations and/or institutions, including physicians engaged in private medical practice except for beauty treatment, veterinary and sanitary-and-epidemiological services. Limitations established by the present Subitem shall not apply to veterinary and sanitary-and-epidemiological services funded from the budget. For the purposes of the present Chapter, the following shall be referred to as medical services:
  -  services defined by the list of services granted under obligatory medical insurance;
  -  services rendered to the population in diagnostics, prevention and treatment irrespective of forms and sources of payment for such under the list approved by the Government of the Russian Federation;
  -  services in the collection of blood from the population which are rendered under agreements with stationary medical establishments and by out-patient departments;
  -  first aid services rendered to the population;
  -  services in the duty of medical staff at a patient's bed;
  -  pathology-anatomic services;
  -  services rendered to pregnant women, infants, disabled persons and drug addicts under treatment;
  3)  services in the care for the ill, disabled and senior citizens granted by the state and municipal authorities of social protection to the persons, the necessity of care for whom is confirmed by appropriate conclusions of bodies of public health services and bodies of social protection of the population;
  4)  services in the care for children at pre-school establishments, holding of classes with minor children in hobby groups, circles (including sports ones) and studios;
  5)  food products produced directly by canteens of universities and schools, canteens of other educational institutions, canteens of medical organizations, children's pre-school establishments and sold by them to aforesaid establishments, and also food products manufactured directly by organizations of public catering and sold by such to aforesaid canteens or to said institutions.
 The provisions of the present Subitem shall be applied to canteens of universities and schools, canteens of other educational institutions, messes of medical organizations only if these establishments are entirely or partially financed from the budget or from resources of obligatory medical insurance funds;
  6)  services in conservation, acquisition and use of archives rendered by archive establishments and organizations;
  7)  services in the carriage of passengers:
 by urban public passenger transport (except for taxis, as well as mini-buses). For the purposes of the present Article, services in the carriage of passengers by urban public passenger transport shall include services in the carriage of passengers under uniform conditions of carriage of passengers, including at single travel tariffs established by bodies of local self-government which grant all privileges for travel approved in due order;
 seagoing, river, railway or motor transport (except for taxis, as well as mini-buses) in suburban transport, provided passengers are carried at single tariffs and all travel privileges are granted as approved in due order;
  8)  undertaker's services, works (services) in the manufacture of gravestone monuments and registration of graves, and also sale of funeral accessories (according to a list endorsed by the government of the Russian Federation);
  9)  postage stamps (except for collectable stamps), marked cards and marked envelopes, lottery tickets of lotteries conducted by decisions of the authorized body;
  10)  services in the provision of living quarters in the housing stock of all forms of ownership;
  11)  coins made of precious metals (except for collectable coins) which are the currency of the Russian Federation, or currency of foreign states.
 Collector's precious metal coins shall include the following:
  -  precious metal coins being the currency of the Russian Federation or the currency of a foreign state (a group of states) coined according to the mirror surface technology;
  -  precious metal coins not being the currency of the Russian Federation or the currency of a foreign state (group of states);
  12)  shares in the authorized (pooled) capital of organizations, shares in unit funds of co-operatives and unit investment funds, securities and instruments of time transactions (including forward and future contracts and options);
  13)  services rendered without collection of an extra charge to repair and maintain goods and household devices, including medical goods during their warranty period, including the cost of spare parts and details for such;
  14)  services in the field of education involving industrial practice (according to the areas of basic and further education as stated in the license) or educational process, except for consulting services, and also services in letting out premises performed by non-commercial educational organizations.
 Sale by non-commercial education organizations of goods (works, services) as their own products (produced by educational institutions, including industrial practice workshops within the framework of basic and further education), and also those bought from outside sources shall be subject to taxation irrespective whether the income from this sale is directed to the educational institution in question or to immediate needs of the development, improvement of the educational process;
  15)  repair and restoration, mothballing and rehabilitation works performed in the restoration of historical and cultural monuments protected by the state, religious buildings and structures used by religious organizations (except for archaeological and earth works in zones adjacent to historical and cultural monuments or cult buildings and structures; civil engineering works in the reconstruction of monuments completely lost to history and culture or of cult buildings and structures; works in the manufacture of restoration, mothballing of structures and materials; activities to control quality of performed works);
  16)  works performed during the sale of target-oriented socio-economic programs (projects) of housing construction for servicemen within the framework of implementation of aforesaid programs, including:
  -  works in the construction of social, cultural purpose or amenities and the associated infrastructure;
  -  works in the creation, construction and maintenance of centers for professional retraining of servicemen, persons discharged from military service and members of their families.
 Operations listed in the present Subitem are not subject to taxation (are exempted from taxation), provided these works are financed solely and directly to the charge of loans or credits granted by international organizations and/or governments of foreign states, foreign organizations or natural persons pursuant to inter-governmental or interstate agreements, a party to which is the Russian Federation, and also agreements signed by authorized bodies of state administration on instruction of the Government of the Russian Federation;
  17)  services rendered by bodies authorized thereto, for which a state duty is collected, all kinds of license, registration and patent fees and charges and also tolls and duties collected by state bodies, bodies of local self-government, by other authorized bodies and officials when granting certain rights to organizations and natural persons (including wood charges, rent charge to use forest stock and other payments to the budgets for the right to use natural resources);
  18)  goods placed under the customs treatment of duty free shop;
  19)  goods (works, services) except for excisable goods sold (performed, rendered) within the framework of rendering gratuitous help (assistance) to the Russian Federation according to the Federal Law on Gratuitous Help (Assistance) to the Russian Federation and Addenda and Amendments to Certain Laws of the Russian Federation on Taxes and on the Establishment of Privileges under the Payments to State Extra-Budgetary Funds in Connection with the Granting of Gratuitous Help (Assistance) to the Russian Federation.
 Sale of goods (works, services) listed in the present Subitem shall not be taxable (exempted from taxation) upon submission to the tax authorities of the following documents:
  -  the contract (copy of the contract) of the taxpayer with the donor of the gratuitous help (assistance) or with the recipient of the gratuitous help (assistance) to deliver goods (perform works, render services) within the framework of rendering the gratuitous help (assistance) to the Russian Federation;
  -  certificate (notarized copies of the certificate) issued in due order and confirming that the delivered goods (performed works, rendered services) are classed as humanitarian or technical help (assistance);
  -  bank statement confirming that proceeds have actually been receive on the taxpayer's account in a Russian bank for the goods (works, services) sold to the donor of free aid (assistance) or to a beneficiary of free aid (assistance).
 If a contract has a clause calling for settlements in cash a bank statement shall be submitted to a tax body to acknowledge the payment of the amounts of money received by the taxpayer into the taxpayer's account in a Russian bank and also copies of cash receipt slips confirming the actual receipt of proceeds from the buyer of the said goods (works, services);
  20)  services rendered by establishments of culture and arts in the area of culture and arts, which include:
  -  services in letting out audio and video media on hire from the stock of said establishments, of sound and technical equipment, musical instruments, stage facilities, costumes, footwear, theatrical props, properties, wigmaker's accessories, articles for cultural needs, animals, exhibits and books; services in the making of copies for educational purposes and teaching aids, services in photocopying, reproduction, photo-copying, making of microcopies of printed matter, museum exhibits and documents from stocks of aforesaid establishments; services in making sound recordings of theatre shows, cultural-and-educational and entertainment shows, in the production of copies of sound recordings from sound records of aforesaid establishments; services in the delivery of printed matter from stocks of libraries to readers and receipt thereof from the readers; services in drafting lists, reports and catalogues of exhibits, materials and other articles and collections making up stocks of aforesaid establishments; services in hiring out scenic and concert areas to other budget funded institutions of culture and arts, and also services in the distribution of tickets specified in paragraph three of the present Subitem;
  -  sale of admission tickets and seasonal tickets to theatre-and-entertainment, cultural-and-educational activities and entertainment shows, side-shows in zoological gardens and parks of culture and rest, excursion tickets and places in tourist groups on a form duly authorized as a strict accountability form;
  -  sale of programs at performances and concerts, catalogues and booklets.
 To establishments of culture and arts for the purposes of the present Chapter, theaters, cinemas, concert organizations and collectives shall be referred theatrical and concert box offices, circuses, libraries, museums, exhibitions, houses and palaces of culture, clubs, houses (in particular of cinema, writers', composers' houses), planetaria, parks of culture and recreation, lecture halls and popular universities, excursion bureaus (safe for tourist excursion bureaus), reserves, botanical gardens and zoos, national parks, natural parks and landscape parks;
  21)  works (services) in the production of cine-products performed (rendered) by organizations of cinematography, of rights to use (including hire and show) cine-products which have received the national film certificate;
  22)  services rendered directly at airports of the Russian Federation and in the air space of the Russian Federation in the service of aircraft, including aero-navigation services;
  23)  works (services including repair ones) in the service of seagoing and inland watercraft within mooring periods (all kinds of harbour fees, services of port craft), as well as pilotage;
  24)  services of pharmaceutical institutions with regard to production of medicines, as well as to manufacture and repair of spectacle lenses (safe for sunglasses), to repair of hearing aids and the prosthetic-and-orthopedic articles enumerated in Subitem 1 of Item 2 of this Article, services related to prosthetic-and-orthopedic assistance.
 3. The following operations shall not be subject to taxation (tax exempt) on the territory of the Russian Federation:
  1)  sale (transfer for own needs) of religious use objects and religious literature (according to the list approved by the Government of the Russian Federation upon submission by religious organizations (associations), the former being produced and sold by religious organizations (associations), by organizations (associations) and by organizations owned by religious organizations (associations), as well as by economic companies whose authorized (pooled) capital is composed of the contribution of religious organizations (associations) within the framework of religious activities, apart from excisable goods and mineral raw materials ones and also the organization and holding by aforesaid organizations of religious rites, ceremonies, prayer assemblies or other cult activities;
  2)  sale (in particular, transfer, performance, provision for own needs) of goods (except for excisable, mineral raw materials and mineral resources, and also other goods according to the list approved by the Government of the Russian Federation upon submission by All-Russian public organizations of disabled persons, works, services (except for broker and other intermediary services), effected and sold by:
  -  public organizations of invalids (including those created as unions of public organizations of invalids) at least 80 per cent of whose membership are invalids and their legal representatives;
  -  organizations whose entire authorized capital consists of contributions of public organizations of invalids specified in paragraph two of the present Subitem if the average active number of invalids among their workers constitutes no less than 50 per cent, and their share in the fund of wages - no less than 25 per cent;
  -  establishments, whose asset's are owned solely by public organizations of invalids specified in paragraph two of the present Subitem and created to achieve educational, cultural, treatment-and-health improvement, physical culture and sports, scientific, information related and other social purposes, and also to render legal and other help to disabled, disabled children and their parents;
  -  health treatment and industrial (labour) workshops at anti-tuberculousis, psychiatric, psycho-neurological establishments, establishments of social protection or social rehabilitation of population;
  3)  the accomplishment of banking transactions by banks (save cash collection), in particular:
  -  raising organisations' and individuals' funds as deposits;
  -  placing borrowed funds of organisations and individuals in the name of banks and on the account of the banks;
  -  opening and keeping organisations' and individuals' bank accounts;
  -  effecting settlements on the instructions of organisations and individuals, in particular, correspondent banks, on their bank accounts;
  -  providing cash services to organisations and individuals;
  -  purchasing/selling foreign currency in cash and in cashless form (in particular, providing mediation services relating to transactions of the purchase/sale of foreign currency);
  -  accomplishing transactions in precious metals and precious stones under the legislation of the Russian Federation;
  -  banks issuing bank guarantees and also accomplishing the following transactions:
  -  issuing a surety for a third person as providing for performance of obligations in pecuniary form;
  -  providing services relating to the installation and operation of a "client-bank" system, in particular, providing software and personnel training for the said system;
  4)  operations performed by organizations that provide information and technological interaction between participants in settlements, including rendering of services in the collection, processing and sending to participants in the settlements of information on bank card operations;
  5)  performance of certain banking operations by organizations which, according to the legislation of the Russian Federation have the right to perform such without a license of the Central Bank of the Russian Federation;
  6)  sale of articles of folk art crafts of recognized artistic value (except for excisable goods) whose samples have been registered in the order established by the Government of the Russian Federation;
  7)  rendering of services in insurance, co-insurance and re-insurance by insurance organizations, and also rendering of services on non-state pension insurance by non-state pension funds.
 For the purposes of the present Article, those operations shall be recognized as operations in insurance, co-insurance and reinsurance as a result of which the insurance organization receives:
  -  insurance (remuneration) payments under insurance, co-insurance and reinsurance contracts, including insurance premium payments, and paid reinsurance commission (including a bonus);
  -  interest charged on deposit of the premium under reinsurance contracts and transferred by the reinsured to the reinsurer;
  -  insurance premiums received by the authorized insurance organization which has duly concluded a coinsurance contract for and on behalf of the insurers;
  -  the funds received by the insurer under as subrogation from a person responsible for damage caused to the insurant at the rate of insurance indemnity paid to the insurant;
  8)  the conducting of lotteries, running of totalizators and holding other games based on risk (including those using game machines) by gambling industry organizations;
  9)  the realization of ore, ore concentrates and other industrial products containing noble metals, of the scrap and wastes of noble metals for the production of noble metals and for refining; the realization of noble metals and precious stones by tax payers (with the exception of those indicated in Subitem 6 of Item 1 of Article 164 of the present Code) to the State Fund of Noble Metals and Precious Stones of the Russian Federation, to the funds of noble metals and precious stones of the subjects of the Russian Federation, to the Central Bank of the Russian Federation and to banks; the realization of precious stones as raw materials (with the exception of uncut diamonds) for processing to enterprises, regardless of the forms of ownership, for subsequent sale for export; the realization of precious stones as raw materials and as cut to specialized foreign economic organisations, to the State Fund of Noble Metals and Precious Stones of the Russian Federation, to the funds of noble metals and precious stones of the subjects of the Russian Federation, to the Central Bank of the Russian Federation and to banks; the realization of noble metals from the State Fund of Noble Metals and Precious Stones of the Russian Federation and from the funds of noble metals and precious stones of the subjects of the Russian Federation to specialized foreign economic organisations, to the Central Bank of the Russian Federation and to banks, as well as of noble metals in bars by the Central Bank of the Russian Federation and by the banks under the condition that these bars remain in one of the certified depositories (in the State Depository of Valuables, in the Depository of the Central Bank of the Russian Federation or in the depositories of banks);
  10)  sale of raw diamonds to processing enterprises of all forms of ownership;
  11)  intrasystem sale (transfers, performance, rendering for own needs) of goods produced (performed works, rendered services) by organizations and establishments of the penitentiary system;
  12)  transfer of goods (execution of works, rendering of services) free of charge within the framework of charities according to the Federal Law on Charities and Charitable Organizations, except for excisable goods;
  13)  sale of entrance tickets whose form is approved in the established manner as a strict accountability form, by organizations of physical culture and sports for entrance to sports and entertainment activities they conduct; rendering of services in leasing out sports facilities to conduct aforesaid activities;
  14)  the provision of services by solicitors/barristers and also the provision of services by the colleges of solicitors/barristers, solicitor/barrister bureaux, chambers of solicitors/barristers of Russian regions or the Federal Chamber of Solicitors/Barristers in connection with their pursuing professional activity;
  15)  rendering of financial services on granting loans in cash;
  16)  performance of research and development works at the expense of funds of budgets, and also funds of the Russian Fund for Fundamental Research, the Russian Fund for Technological Development and extra-budgetary funds of ministries, departments and associations formed for these purposes according to the legislation of the Russian Federation; performance of research and development works by educational and research institutions and under economic contracts;
  17)  Abolished
  18)  services of sanatoriums, resorts, health improvement and recreational establishments located on the territory of the Russian Federation which are formalized by authorizations to a course of treatment with board or without it, being strict accountability forms;";
  19)  performance of works (rendering of services) in the fighting of wood fires;
  20)  sale of products of own manufacture of organizations engaged in the production of agricultural products which generate at least 70 per cent of the overall share of incomes from the sale in the total sum of their incomes, the former made with wages in kind for labour, issues in kind for labor, and also for the public catering of workers involved in agricultural works;
  21)  Abolished
 4. If the taxpayer performs taxable operations and operations which are not taxable (being released) according to provisions of the present Article, the taxpayer is obliged to keep separate accounting of such operations.
 5. A taxpayer performing operations in the sale of goods (of works, services) stipulated by Item 3 of the present Article shall have the right to refuse the release of such operations from taxation having presented an appropriate application to the tax authorities at the place of their registration as a taxpayer no later than by the 1st tax period starting from which the taxpayer is going to refrain from the release or to suspend the latter.
 Such refusal or suspension is possible only concerning all operations performed by the taxpayer stipulated by one or several Subitems of Item 3 of the present Article. A similar operation may not be released or not tax exempt depending on who the buyer (purchaser) of the corresponding goods (works, services) is.
 It is not permitted to refuse or suspension release from tax obligation operations for a period of less than one year.
 6. Operations listed in the present Article shall not be subject to taxation (tax exempt), provided the taxpayers performing these operations hold the appropriate licenses to carry out the licensed activity according to the legislation of the Russian Federation.
 7. Release from tax obligation according to provisions of the present Article shall not apply when business activities are performed in the interests of other persons on the basis of contracts of delegation, contracts of commission agency or agency contracts, except as otherwise provided in the present Code.
 8. In the event of amending the wording of Items from 1 to 3 of this Article (cancellation of a relief from taxation or referring taxable operations to the operations which are exempt from taxation) taxpayers shall apply the procedure for determining the tax base (or for relief from taxation) which was effective on the date of shipping goods (carrying out works and rendering services), regardless of the date of paying them.

Article 150. Importation of Goods to the Territory of the Russian Federation Not Taxable (Tax Exempt)


 1. Not taxable (tax exempt) shall be the importation to the customs territory of the Russian Federation of:
  1)  goods (except excisable goods) imported as gratuitous aid (assistance) to the Russian Federation, in accordance with the manner established by the Government of the Russian Federation pursuant to the Federal Law on Gratuitous Aid (Assistance) to the Russian Federation and the Introduction of Amendments and Addenda to Certain Legislative Acts of the Russian Federation on Taxes and on the Establishment of Privileges on Payments to the State Extra-Budgetary Funds in Connection with the Granting of Gratuitous Aid (Assistance) to the Russian Federation;
  2)  goods listed in Subitem 1 of Item 2 of Article 149 of the present Code and also the raw material and component parts for their production;
  3)  materials for production of medical immunobiological drugs for diagnostics, prevention and/or treatment of infectious diseases (under the list approved by the Government of the Russian Federation);
  4)  valuable articles of art handed over as gifts to establishments and referred by law of the Russian Federation to highly valuable articles of cultural and national heritage of the peoples of the Russian Federation;
  5)  all types of printed publications received by state and municipal libraries and museums under international exchanges of books and also of products of cinematography imported by specialized state organizations for the purposes of international non-commercial exchanges;
  6)  products manufactured as a result of economic activity of Russian organizations on land lots being the territory of a foreign state covered by the Russian Federation's right of land use on the basis of an international treaty;
  7)  process equipment, components and spare parts thereto imported as a contribution to authorized (pooled) capitals of organizations;
  8)  raw natural diamonds;
  9)  goods intended for official use by foreign diplomatic representations and agencies equated thereto, and also for personal use by diplomatic and administrative-clerical personnel of these agencies, including members of their families living with them;
  10)  currency of the Russian Federation and foreign currency, notes being legal tender (except for those intended for collecting), and also financial credit instruments - shares, bonds, certificates, bills of exchange;
  11)  sea products caught and/or processed by the fishing-production enterprises (organisations) of the Russian Federation.
 2. Deleted

Article 151. Peculiarities of Taxation When Goods are Moved Across the Customs Border of the Russian Federation


 1. When goods are imported to the customs territory of the Russian Federation depending on the selected customs treatment the tax shall be levied in the following manner:
  1)  in the event of clearance for free circulation the tax shall be paid in full;
  2)  when goods are placed under the customs treatment of reimport, the taxpayer shall pay the amounts of tax from which he had been released or the amounts which were repaid to him due to the export of goods according to the present Code in the order stipulated by the customs legislation of the Russian Federation;
  3)  when goods are placed under the customs treatment of transit, customs warehouse, re-export, duty free, free custom zone, free warehouse, destruction or refusal in favour of the state, movement of supplies no tax shall be paid;
  4)  when goods are placed under the customs regime of processing in the customs territory the tax shall not be paid on the condition that the processed products are exported out of the customs territory of the Russian Federation within a certain term;
  5)  when goods are placed under the customs treatment of temporary importation, the complete or partial release from payment of tax in the order stipulated by the customs legislation of the Russian Federation shall be applied;
  6)  in case of the import of products of processing of goods placed under the customs treatment of processing outside of the customs territory the full or partial exemption of payment of tax in the order stipulated by the customs legislation of the Russian Federation shall be applied;
  7)  when goods are placed under the customs regime of processing for internal consumption the tax shall be paid in full.
 2. When goods are exported from the customs territory of the Russian Federation, the tax shall be levied in the following order:
  1)  in case of export of goods from the customs territory of the Russian Federation under the customs treatment of export, no tax shall be paid.
 The manner of taxation specified in the present Subitem shall be applied also when goods are placed under the customs treatments of customs warehouse, free warehouse or free customs zone for the purposes of subsequent export of these goods (including products of their processing) according to the customs treatment of export;
  2)  in case of export of goods from the customs territory of the Russian Federation under the customs treatment of reexport the amount of tax paid upon importation to the customs territory of the Russian Federation shall be repaid to the taxpayer in the order stipulated by the customs legislation of the Russian Federation;
  3)  when exported goods are moved across the customs border of the Russian Federation under the customs treatment of moving supplies the tax shall not be levied;
  4)  in case of export of goods from the customs territory of the Russian Federation in accordance with customs treatments different from those specified in Subitems 1 to 3 of the present Item, neither exemption from taxation shall be granted nor shall paid amounts of tax be reimbursed, unless otherwise stipulated by the customs legislation of the Russian Federation.
 3. When natural persons move goods intended for personal, family, household and other needs not relating to the pursuance of entrepreneurial activity the procedure for payment of the tax payable in connection with the movement of the goods across the customs border of the Russian Federation shall be determined by the Tax Code of the Russian Federation.

Article 152. Peculiarities of Taxation When Goods Are Moved Across the Customs Border of the Russian Federation in the Absence of Customs Control and Customs Clearance


 1. If under an international treaty of the Russian Federation both the customs control and customs clearance of goods moved across the customs border the Russian Federation are cancelled, the tax authorities of the Russian Federation shall collect the tax levied on goods originating in such a state and imported to the territory of the Russian Federation.
 2. In such cases, the cost of purchased goods imported into the territory of the Russian Federation, including the cost of their delivery up to the border of the Russian Federation shall be defined as the item of taxation.
 3. The tax paid to the budget simultaneously with the payment of the cost of goods, but no later than 15 days after recording imported goods on the books, to the customs territory of the Russian Federation.
 The order of payment of the commodity tax levied on goods moved across the customs border of the Russian Federation without customs control or customs clearance shall be defined by the Government of the Russian Federation.

Article 153. The Tax Base


 1. The tax base in case of sale of goods (works, services) is defined by the taxpayer according to the present Chapter depending on the peculiarities of the sale of goods (works, services) produced by him or purchased by him.
 In case of transfer of goods (performance of works, rendering of services) for one's own needs and recognized as an item of taxation in conformity with Article 146 of the present Code, the tax base shall be defined by the taxpayer according to the present Chapter.
 In case of import of goods to the customs territory of the Russian Federation, the tax base shall be defined by the taxpayer according to the present Chapter and the customs legislation of the Russian Federation.
 When the taxpayers apply various tax rates during sale (transfer, performance, provision for own needs) of goods (works, services) the tax base shall be defined separately for each type of good (works, services) taxed at different rates.
 When identical tax rates are used, the tax base shall be defined summarily for all types of operations taxed at this rate.
 2. When determining the tax base, the proceeds from the sale of goods (works, services) shall be defined on the basis of all incomes of the taxpayer associated with settlements under the payment for aforesaid goods (works, services) received by him in cash and/or in kind, including the payment by means of securities.
 Incomes specified in the present Item shall be taken into account if the former can be evaluated, and to the degree to which they can be evaluated.
 3. When determining the tax base, the proceeds (expenses) of the taxpayer in foreign currency shall be converted into roubles at the exchange rate of the Central Bank of the Russian Federation according to the date of sale of goods (works, services) or on the date when the expenses were actually borne.

Article 154. The Procedure for the of Determination of the Tax Base When Selling Goods (Works, Services)


 1. The tax base upon the sale by the taxpayer of goods (works, services), unless otherwise stipulated by the present Article, shall be defined as the cost of these goods (works, services) estimated on the basis of prices defined according to Article 40 of the present Code, with allowance for excise taxes (for excisable goods) and without inclusion into such of the tax.
 2. When goods (works, services) are sold under commodity swap (barter) transactions and sale of goods (works, services) on a gratuitous basis, transfer of title to the subject of pledge to the pledgee in case of default on an obligation secured by the pledge for the transfer of goods (results of performed works, rendering of services) when paying wages in kind, the tax base shall be defined as the cost of aforesaid goods (works, services) estimated on the basis of prices defined in compliance with the procedure similar to that of Article 40 of the present Code, with allowance for excise taxes (for excisable goods) and without inclusion into such of the tax.
 In the case of the sale of goods (works, services) involving subsidies granted by the budgets of different level in connection with a taxpayer's application of state regulated prices or involving the privileges granted to specific consumers under the federal legislation tax base shall be assessed as the value of the goods (works, services) sold calculated proceeding from their actual selling prices.
 3. In case of sale of assets subject to record-keeping at cost with account taken of the paid tax, the tax base shall be defined as the difference between the price of sold property defined with due regard to the provision of Article 40 of the present Code, with allowance for the tax, excise taxes (levied on excisable goods), and cost of sold assets (residual cost with account for reassessments).
 4. In the case of the sale of agricultural products and products resulting from processing thereof purchased from natural persons (not being taxpayers) according to the list endorsed by the Government of the Russian Federation (save excisable goods) tax base shall be assessed as a difference between the price determined in compliance with Article 40 of the present Code with the account taken of the tax and the purchasing price of the said products.
 5. The tax base in case of services in the manufacture of goods from raw material made on commission (materials) shall be defined as the cost of their treatment, processing or another transformation with account for excise taxes (for excisable goods) and without including in it the tax.
 6. In case of sale of goods (works, services) under time deals (deals providing for the delivery of goods (performance of works, rendering of services), upon expiration of a term established by the agreement (contract) at a price fixed directly in this agreement or contract) the tax base shall be defined as the cost of these goods (works, services) stated directly in the agreement (contract), but shall not be below their cost estimated on the basis of prices defined in accordance with the procedure similar to that of Article 40 of the present Code and effective on the date of sale with account for excise taxes (for excisable goods) and without inclusion into such of the tax.
 7. In the case of the sale of goods in returnable tare having pledge prices the pledge prices of the tare shall not be included in tax base if the said tare is subject to return to the seller.
 8. Depending on peculiarities of the sale of goods (works, services), the tax base shall be defined according to Articles 155 - 162 of the present Chapter.

Article 155. Peculiarities of Determination of Tax Base for a Contract of Financing with the Assignment of a Monetary Claim or an Assignment of Claim (Cession)


 1. In case of an assignment of claim arising from an agreement of sale of goods (works, services) operations on whose sale are subject to taxation (are not tax exempt according to Article 149 of the present Code), or the transfer of aforesaid claim to another person on the basis of law, the tax base under operations of sale of said goods (works, services) shall be defined in the order stipulated by Article 154 of the present Code.
 2. The tax base in case of sale, by a new creditor who has received a claim, of financial services associated with the assignment of a claim arising from contract of sale of goods (works, services), operations on whose sale are subject to taxation, shall be defined as an amount exceeding the amounts of income received by the new creditor upon the subsequent assignment of the claim or termination of the corresponding obligation, as compared to the sum of expenses borne on the purchase of said claim.
 3. The tax base in case of sale, by the new creditor who has received a claim, of other financial services associated to the claims, being subject of the assignment, shall be defined in the order established by Article 154 of the present Code.

Article 156. Peculiarities of Determination of Tax Base by Taxpayers Receiving an Income on the Basis of Contracts of Delegation, Contracts of Commission Agency or Agency Contracts


 1. When accomplishing a business activity in the interests of another person on the basis of contracts of delegation, contracts of commission agency or agency contracts, the taxpayers shall determine the tax base as an amount of income received by them in the form of compensations (any other incomes) upon the performance of any of the aforesaid contracts.
 2. Operations in the sale of services rendered on the basis of contracts of delegation, contracts of commission agency or agency contracts, and associated with the sale of goods (works, services) not subject to taxation (exempted from taxation) according to Article 149 of the present Code, shall not be covered by exemption from taxation, except for intermediary services in the sale of goods (works, services) specified in Item 1 and Subitems 1 and 8 of Item 2 and Subitem 6 of Item 3 of Article 149 of the present Code.

Article 157. Peculiarities of Determination of Tax Base and Peculiarities of Payment of Tax upon the Accomplishment of Carriage and Sale of International Communications Services


 1. In case of performance of carriage (except for suburban carriage according to paragraph three of Subitem 7 of Item 2 of Article 149 of the present Code) of passengers, luggage, cargo, luggage-freight or mail by railway, motor vehicle, air, sea or river transport, the tax base shall be defined as the cost of carriage (without inclusion of the tax). Upon the accomplishment of air carriage, the boundaries of the territory of the Russian Federation shall be defined at the starting and destination points of the air trip.
 2. In case of the sale of travel documents at reduced rates, the tax base is calculated on the basis of such reduced rates.
 3. The provisions of the present Article shall be applied taking into account the provisions of Item 1 of Article 164 of the present Code and shall not apply to the carriage specified in Subitem 7 of Item 2 of Article 149 of the present Code, nor to the carriage stipulated by international treaties (agreements).
 4. When prior to the beginning of a trip, cash is returned to customers for unused travel documents, the returnable amount shall include the entire amount of the tax. If the passengers turn in the travel documents in transit due to termination of the trip, the returnable amount shall include the amount of the tax at the rate corresponding to the distance not yet covered by the passengers. In such a case when tax base is being assessed no account shall be taken of the amounts actually refunded to the passengers.
 5. In case of a sale of international communication services the amounts received by telecommunication agencies as a result of selling said services to foreign purchasers shall not be accounted, when determining their tax base.

Article 158. Peculiarities of Determination of Tax Base in Case of Sale of an Enterprise as a Whole Property Complex


 1. The tax base in case of sale of an enterprise as a whole property complex shall be defined separately on each type of asset of the enterprise.
 2. If the price at which the enterprise is sold turned out to be below the book value of sold assets, a correction factor shall be applied for the purposes of taxation which is computed as the relation of the selling price of the enterprise to the book value of said assets.
 If the price at which the enterprise is sold turned out to be above the book value of sold assets, a correction factor shall be applied for the purposes of taxation computed as the relation of the selling price of the enterprise marked down by the book value of debt receivable, (and by the cost of securities if no decision was made to revalue such) to the book value of sold assets and marked down by the book value of debt receivable (and for the cost of securities if no decision was made to revalue such) is accepted. In this case the correction factor shall not be applied to the amount of debt receivable (and the cost of securities).
 3. For the purposes of taxation, the price of each type of assets shall be accepted as the product of its book value and the correction factor.
 4. The vendor of the enterprise shall draw up a summary invoice which is to state in the column "Total, including VAT" the price at which the enterprise was sold. In so doing, it is necessary to make separate entries in the summary invoice for fixed assets, intangible assets, other types of assets of industrial and non-productive purpose, the amount of debt receivable, and the value of securities and other items of assets of the balance sheet. The summary invoice shall enclose the statement of inventory taking.
 In the summary invoice, the price of each type of asset shall be accepted as the product of its book value into a correction factor.
 For each type of asset whose sale is taxed, it is necessary to state in the columns "Rate of VAT" and "Amount of VAT" the corresponding settlement tax rate of 15.25 per cent and the amount of the tax defined as the percentage share of the tax base corresponding to the settlement tax rate of 15.25 per cent.

Article 159. The Procedure for the Determination of Tax Base When Performing Operations on the Transfer of Goods (Performance of Works, Rendering of Services) for Own Needs and the Execution of Civil and Erection Works for One's Own Consumption


 1. When a taxpayer transfers goods (performs works, renders services) for their own needs, expenses under which are not accepted for deduction (in particular, through depreciation deductions) in the calculation of tax levied on profit of organizations, the tax base shall be defined as the cost of these goods (works, services) estimated on the basis of sale prices of identical (and in their absence, homogeneous) goods (similar works, services) effective in the previous tax period, and in their absence - on the basis of market prices, taking into account excise taxes (for excisable goods) and without inclusion into such tax.
 2. In case of performance of civil and erection works for one's own consumption, the tax base shall be defined as the cost of performed works calculated on the basis of all actual expenses borne by the taxpayer in their performance.

Article 160. The Procedure for Determination of Tax Base When Importing Goods to the Customs Territory of the Russian Federation


 1. In case of import of goods (except for goods specified in Items 3 and 5 of the present Article and with allowance for Articles 150 - 152 of the present Code) into the customs territory of the Russian Federation, the tax base shall be defined as the amount of:
  1)  the customs value of these goods;
  2)  payable customs duty;
  3)  payable excises (on excisable goods).
 2. In case of import to the customs territory of the Russian Federation of goods which had been previously exported from it to be processed outside the customs territory of the Russian Federation according to the customs treatment of outward processing, the tax base shall be defined as the cost of such processing.
 3. The tax base shall be defined separately for each group of goods of the same name, type and brand imported to the customs territory of the Russian Federation.
 If a consignment of goods imported into the customs territory of the Russian Federation contains both excisable goods and non-excisable goods, the tax base shall be defined separately for each group of aforesaid goods. The tax base shall be defined in a similar order if a consignment of goods imported to the customs territory of the Russian Federation contains products of processing of goods exported earlier from the customs territory of the Russian Federation for processing outside the customs territory of the Russian Federation.
 4. If according to an international treaty the Russian Federation has cancelled the customs control and customs clearance for goods imported to the territory of the Russian Federation, the tax base shall be defined as the amount of:
 the cost of purchased goods, including the cost of delivery of aforesaid goods up to the border of the Russian Federation;
 payable excise taxes (for excisable goods).

Article 161. Peculiarities of Determination of Tax Base by Tax Agents


 1. In case of sale of goods (works, services) whose place of sale is the territory of the Russian Federation, for foreign persons being taxpayers who have not registered with the tax authorities as the taxpayers, the tax base shall be defined as the sum of income from sale of these goods (works, services) taking into account the tax.
 The tax base shall be defined separately in case of performance of each operation of sale of goods (works, services) on the territory of the Russian Federation taking into account the present Chapter.
 2. The tax base specified in Item 1 of the present Article shall be defined by tax agents. In so doing, the tax agents shall be recognized as organisations and individual entrepreneurs registered with the tax authorities, who purchase on the territory of the Russian Federation of goods (works, services) from the foreign persons indicated in Item 1 of this Article. The tax agents are to compute, withhold from the taxpayer, and pay to the budget the relevant amount of tax regardless of whether they execute obligations of the taxpayer associated with the calculation and payment of tax and also other obligations established by the present Chapter.
 3. When rendering on the territory of the Russian Federation services by bodies of public authority and government and bodies of local self-government relating to the hiring out of federal property, property, of constituent entities of the Russian Federation and municipal property the tax base shall be defined as the amount of rental taking into account the tax. In so doing, the tax base shall be defined by the tax agent separately for each leased item of property. In this case, leasers of the aforesaid property shall be recognized as tax agents. Said persons are to calculate and withhold from the incomes paid to the lessor and to pay to the budget the appropriate amount of the tax.
 4. When selling on the territory of the Russian Federation confiscated property, ownerless valuables, treasures and bought valuables, as well as the valuables transferred to the State by heirship, the tax base shall be determined reasoning from the cost of sold property (valuables) subject to the provisions of Article 40 of this Code, subject to the tax, excise duties (as regards excisable goods). In this case, the bodies, organizations or individual businessmen authorized to sell said property shall be recognized as tax agents.

Article 162. Peculiarities of Determination of Tax Base Taking into Account Amounts Associated with Settlements for the Payment for Goods (Works, Services)


 1. The tax base determined according to Articles 153 - 158 of the present Code shall be increased by the following amounts:
  1)  advance or other payments received against future deliveries of goods, performance of works or rendering of services.
 Provisions of the present Subitem shall not apply to advance payments and other payments received to offset the forthcoming delivery of goods, carrying out works and rendering services, taxable at the tax rate of zero per cent in compliance with Subitems 1 and 5 of Item 1 of the present Code, whose production cycle lasts more than six months (as per the list and in the procedure defined by the Government of the Russian Federation);
  2)  received amounts for sold goods (works, services) in the form of financial assistance and designed to replenish special purpose funds, towards the increase of incomes, or otherwise associated with payment for sold goods (works, services);
  3)  amounts received in the form of interest (discount) on the bonds received as offsetting payment for sold goods (works, services) and bills of exchange, interest under credits against goods in the part exceeding the interest rate computed on the basis of the refinancing rates of the Central Bank of the Russian Federation, effective in the periods for which interest is being calculated;
  4)  indemnities received under contracts of insurance of risk of default on contractual obligations by a contractor of the insurant creditor if under the insured contractual obligations the insurant is to deliver goods (works, services) whose sale is recognized as an item of taxation according to Article 146 of the present Code;
 2. Provisions of Item 1 of the present Article shall not cover operations of the sale of goods (works, services) which are not subject to taxation (are released from taxation), as well as in respect of goods (works and services) which are not sold in compliance with Articles 147 and 148 of this Code on the territory of the Russian Federation.

Article 163. Tax Period


 1. Tax period and likewise for the taxpayers discharging the duties of tax agents, hereinafter referred to as tax agents) shall be established as a calendar month, except as otherwise established by Item 2 of the present article.
 2. For taxpayers (tax agents) having monthly amounts of proceeds from the sale of goods (works, services) over the quarter, with no account taken of the tax, not exceeding one million roubles the tax period shall be set as a quarter.

Article 164. Tax Rates


 1. Taxation shall be imposed at 0 per cent tax rate on the sale of:
  1)  goods (except for petroleum, including stable gas condensate and natural gas exported to territories of member states of the Commonwealth of Independent States) that have been exported under the custom treatment of export provided that documents required under Article 165 of the present Code are submitted to the tax authorities;
  2)  works (services) directly involved in the manufacture and sale of goods specified in Subitem 1 of the present Item.
 The provision of the present subitem shall apply to works (services) in the escorting, transporting, loading and trans-shipment of goods exported from the territory of the Russian Federation and those imported to the Russian Federation (the former being performed by Russian carriers), and other similar works (services), and also works (services) in the processing of goods placed under the customs treatments of processing of goods in the customs territory and under customs control;
  3)  works (services) directly associated with the carriage (transportation) across the customs territory of the Russian Federation of goods that have been placed under the customs treatment of transit across aforesaid territory;
  4)  services in the carriage of passengers and luggage on condition that the departure point or destination point of passengers and luggage is located outside of the territory of the Russian Federation, provided the carriage is registered on the basis of uniform international documents of carriage;
  5)  works (services) performed (rendered) directly in outer space, and also the scope of preparatory works (services) on grounds that are technologically determined by and form an integral part of works (services) performed (rendered) directly in outer space;
  6)  of noble metals by tax payers, engaged in their extraction or production out of scrap and wastes, containing noble metals, to the State Fund of Noble Metals and Precious Stones of the Russian Federation, to the funds of noble metals and precious stones of the subjects of the Russian Federation, to the Central Bank of the Russian Federation and to banks;
  7)  goods (works, services) for official use by foreign diplomatic representations and agencies equated to such or for personal use by diplomatic or administrative-clerical personnel of such agencies, including members of their families staying with them. The sale of goods (performance of works, rendering of services) specified in the present Subitem shall be subject to taxation at 0 per cent when the legislation of the corresponding foreign state establishes a similar order concerning diplomatic agencies and those equated to such, of the Russian Federation, diplomatic and administrative-clerical personnel of such agencies (including members of their families staying with them), or if such standard is stipulated in an international treaty of the Russian Federation. The list of foreign states concerning whose agencies the standards of the present Subitem are applied shall be defined by a federal body of executive power governing relations of the Russian Federation with foreign states and international organizations jointly with the Ministry of Taxation of the Russian Federation.
 The order of application of the present Subitem shall be established by the Government of the Russian Federation.
  8)  supplies exported from the territory of the Russian Federation under the customs treatment of movement of supplies. For the purposes of this Article supplies shall mean fuel and combustive-lubricating materials which are necessary for ensuring the normal operation of aircraft and sea ships, as well as mixed navigation vessels (for rivers and sea).
 2. Taxation shall be imposed at 10 per cent in case of sale of:
  1)  the following food articles:
  -  cattle and poultry in live weight;
  -  meat and meat products (except for gourmet articles: tenderloin, veal, tongue, sausage articles - fresh smoked of best quality, fresh smoked semi-dry, of best quality, fresh seasoned, stuffed of best quality; smoked articles made of pork, mutton, beef, veal, poultry - balyk, karbonade, neck, ham, pastorma, loin; baked pork and beef; canned ham, bacon, karbonade and tongue in marinade);
  -  milk and diary products (including ice-cream produced on their basis, except for ice-cream produced on a fruits-and-berry basis, fruit and food ice);
  -  eggs and egg based products;
  -  vegetable oil;
  -  margarine;
  -  sugar, including raw sugar;
  -  salt;
  -  grain, compound food, fodder mixes, grain waste;
  -  oilseeds and products of their processing (coarsely cut, oilcakes);
  -  bread and baked food articles (including fancy bread, rusk and roll articles);
  -  groats;
  -  flour;
  -  pasta;
  -  live fish (except for valuable species: white salmon, Baltic and Far Eastern salmon, sturgeon (beluga, bester, sturgeon, sevryuga, sterlet), salmon, trout (except for sea trout), nelma, keta, chavycha, kizhuch, muksun, omul, Siberian and Amur sig, chir);
  -  seafood and fish products, including cooled, frozen or of another kind of processing, herring, canned food and pickled canned food (except for gourmet articles: caviar of sturgeon and salmon species; of white salmon, Baltic salmon, of sturgeon fish - beluga, bester, sturgeon, sevryuga, sterlet; salmon; backs and flanks of nelma, cold smoked; light-, medium- and semuzh- pickled keta and chavycha; backs of keta, chavycha and cold smoked kizhuch, flanks of keta and sides of cold smoked chavycha; backs of muksun, omul, Siberian and Amur sig, cold smoked chir; pickled canned fillet slices of Baltic salmon and Far Eastern salmon; crab meat and sets of cooked-and-frozen separate limbs of crabs; of spiny lobsters);
  -  children's and diabetic foods;
  -  vegetables (including potatoes);
  2)  the following goods for children:
  -  knitted articles for the newborn and children of day care, pre-school, junior and senior school age groups: outdoor knitted articles, knitted underwear articles, socks and stockings, other knitted articles: gloves, mittens, headgear;
  -  ready-made garments, including garments made of natural sheepskin and rabbit (and likewise ready-made garments from natural sheepskin and rabbit with leather insets) for new born children and for children of nursery age, pre-school, junior and senior school age, outer clothing (including dresses and suits), underwear articles, headgear, clothes and articles for new-born children and children of nursery age. The provisions of this Paragraph shall not extend to ready-made garments made of natural leather and natural fur, safe for natural sheepskin and rabbit;
  -  footwear (except for sports): footwear for the newborn and children of day care groups, of pre-school, and school; made of felt or rubber: small children's sizes, childrens, pupils';
  -  children's beds;
  -  children's mattresses;
  -  perambulators;
  -  school exercise-books;
  -  toys;
  -  plasticine;
  -  pencil cases;
  -  counting sticks;
  -  school abacuses;
  -  school diaries;
  -  drawing-books;
  -  albums for drawing;
  -  albums for plotting;
  -  folders for exercise-books;
  -  covers for textbooks, diaries, exercise-books;
  -  holders of cards with figures and letters;
  -  diapers.
  3)  periodical printed publications, except for periodical printed publications of advertising or erotic nature;
  -  education, science and culture books, safe for promotional and erotic books;
  -  the services of forwarding and delivery of the periodical printed publications and books specified in Paragraphs 1 and 2 of the present subitem;
  -  the editorial and publishing works (services) related to the production of periodical printed publications and books indicated in Paragraphs One and Two of this Subitem;
  -  the services of placing advertisements and information announcements in the periodical printed publications specified in Paragraph 1 of the present subitem;
  -  the services of drawing up and accomplishment of a subscription contract relating to the periodical publications specified in Paragraph 1 of the present subitem, in particular, the services of delivery of a periodical printed publication to the subscriber if there is a provision for the delivery in the subscription contract.
 For the purposes of the present subitem the "periodical printed publication" is a newspaper, magazine, almanac, bulletin, another publication with a permanent title, current number and issued at least once a year.
 For the purposes of the present subitem the "periodical printed publications of advertising nature" are periodical printed publications in which advertisement occupies over 40 per cent of the volume of one issue of the periodical publication;
  4)  the following medical goods, Russian and foreign-made:
  -  medicinal preparations, in particular medicinal substances including in particular those made by a chemist's shop;
  -  medical-purpose articles.
 3. Taxation shall be at the 18 per cent tax rate in the cases not specified in Items 1, 2 and 4 of the present Article.
 4. When receiving monetary assets connected with payments for the goods (works and services) provided for by Article 162 of the this Code, when deducting the tax by tax agents in compliance with Article 161 of this Code, when selling property purchased elsewhere and taxable under Item 3 of Article 154 of this Code, when selling agricultural products and products of processing thereof in compliance with Item 4 of Article 154 of this Code, as well as in other cases where in compliance with this Code the amount of the tax should be determined by way of calculations, the tax rate shall be determined as percentage of the tax rate provided for by Item 2 or Item 3 of this Article, to the tax base taken as 100 and increased by the appropriate amount of the tax rate.
 5. In case of the import of goods to the customs territory of the Russian Federation, the tax rates specified in Items 2 and 3 of the present Article shall be applied.
 6. Under operations of the sale of goods (works, services), stipulated by Subitems 1 - 7 of Item 1 of the present Article, the taxpayer shall submit a separate tax declaration to the tax authorities.

Article 165. The Order of Confirmation of the Right to Receive Reimbursements in Case of Taxation at the 0 per cent tax rate


 1. In case of sale of goods specified by Subitem 1 of Item 1 and (or) Subitem 8 of Item 1 of Article 164 of the present Code for confirmation of justification of application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions, the following documents shall be submitted to the tax authorities unless otherwise is stipulated by Items 2 and 3 of the present article;
  1)  the contract (copy of the contract) of the taxpayer with the foreign person to deliver goods (supplies) beyond the borders of the customs territory of the Russian Federation. If the contracts contain information constituting a state secret, instead of copies of the complete text of the contract an abstract thereof shall be submitted containing the information required to effect the tax control (in particular, information on the terms of delivery, on times, price, type of products);
  2)  a bank abstract (a copy of a bank abstract) confirming the actual receipt of proceeds from the foreign person a buyer of aforesaid goods (supplies) - to an account of the taxpayer held with a Russian bank.
 If the contract provides for settlement in cash, the taxpayer shall submit to the tax authorities a bank abstract (a copy of a bank abstract) confirming that the taxpayer had entered the received amounts to his account held with a Russian bank, and also copies of cash collection slips confirming the actual receipt of proceeds from the foreign person - the buyer of aforesaid goods (supplies).
 If foreign currency earnings from the sale of goods (works, services) on the territory of the Russian Federation are not entered into accounts, effected in compliance with the procedure provided by the legislation of the Russian Federation on currency exchange regulations and currency control, the taxpayer shall submit to the tax authorities documents (copies thereof) confirming the right not to enter into accounts foreign currency earnings in the territory of the Russian Federation.
 If under foreign trade transactions of commodity swaps (barter), the taxpayer submits to tax authorities documents confirming the fact of importation of the goods (performance of works, rendering of services) received under aforesaid operations in the territory of the Russian Federation and of their entering into accounts;
  3)  a cargo customs declaration (its copy) with marks of the Russian customs authority which has released goods in the regime of export, and of the Russian customs authority in whose region of activity is situated the crossing point through which the goods were exported from the customs territory of the Russian Federation (hereinafter referred as the "border customs authority").
 Upon exportation of goods under the customs treatment of export by pipeline transport or via transmission lines, the complete cargo customs declaration (its copy) shall be submitted with notes of the Russian customs authority performing the customs clearance of said export of the goods.
 In case of export of goods under the customs treatment of export across the border of the Russian Federation with a member state of customs Union on which the customs control was cancelled, the cargo customs declaration (its copy) shall be submitted with notes of the customs authority of the Russian Federation effecting the customs clearance of said exportation of goods.
 In cases and in the manner defined by the Ministry of Taxation of the Russian Federation, as agreed with the State Customs Committee of the Russian Federation, upon the export of certain types of goods, exporters are permitted to submit the cargo customs declaration (its copy) with marks of the customs authority which effected the customs clearance of the exported goods, and the special register of the actually exported goods with marks of the border customs authority of the Russian Federation;
 When exporting supplies from the territory of the Russian Federation under the customs treatment of movement of supplies, the customs declaration (its copy) with regard to the supplies shall be submitted with the marks of the customs agency, in whose scope of operation the port (airport) open for international carriage is situated, concerning exportation of supplies from the customs territory of the Russian Federation;
  4)  copy of the transport, shipping and/or of other documents with marks of border customs authorities confirming the export of goods from the territory of the Russian Federation. The taxpayer can submit any of the listed documents taking into account the following.
 In case of export of goods under the customs treatment of export on ships through seaports, the taxpayer shall submit to the tax authorities the following documents to confirm that the goods have been exported from the customs territory of the Russian Federation:
 a copy of an order to ship the exported goods, including the name of the port of discharge with a mark "Loading permitted" of a border custom-house of the Russian Federation;
 a copy of the bill of lading for the carriage of the exported goods, which in the column "Port of discharge" shall give the place located outside the customs territory of the Russian Federation.
 In the case of the export of goods under the customs regime of export across the border of the Russian Federation with a member state of the Customs Union where customs control has been abolished copies of carriage and forwarding documents shall be presented as bearing annotations of the customs body of the Russian Federation which has completed customs formalities in respect of the said export of the goods.
 In case of export of goods under the regime of export by air transport the taxpayer shall submit to the tax authorities a copy of the international air cargo waybill which is to name an airport of discharge located outside the customs territory of the Russian Federation in order to confirm the export of goods from the customs territory of the Russian Federation.
 Copies of transport, shipping and/or other documents confirming the export of goods from the customs territory of the Russian Federation can not be submitted in case of export of goods under the customs regime of export by pipeline transport or via transmission lines.
 When exporting supplies from the territory of the Russian Federation under the customs treatment of movement of supplies, there shall be submitted copies of transportation, shipping and other documents confirming the exportation of the supplies from the customs territory of the Russian Federation by aircraft and sea ships, as well as by mixed navigation vessels (for inland and sea navigation).
 2. In case of sale of goods stipulated by Subitem 1 or 8 of Item 1 of Item 1 of Article 164 of the present Code, through a commission agent, an attorney or an agent under a contract, of commission agency, contract of delegation or agency contract, the following documents shall be submitted to the tax authorities in order to prove the propriety of the application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions:
  1)  the contract of commission agency, contract of delegation or agency contract (or copies) of the taxpayer with a commission agent, attorney or agent;
  2)  the contract (or copy) of the person effecting the delivery of goods for export or delivery of supplies on the instruction of the taxpayer (according to the contract of commission agency, contract of delegation or agency contract) with a foreign person to deliver goods (supplies) from the customs territory of the Russian Federation;
  3)  a bank abstract (its copy) confirming the actual receipt of proceeds from the foreign person acting as the buyer of goods (supplies) in an account of taxpayer or the commission agent (of the attorney, agent) in a Russian bank.
 If the contract provides for settlement in cash, it is necessary to submit to the tax authorities a bank abstract (its copy) confirming the entering of amounts received by taxpayer or the commission agent (by the attorney, the commission agent) into his account held with a Russian bank, and also copies of cash collection slips which confirm the actual receipt of the proceeds from the foreign person acting as the buyer of the goods (supplies).
 If foreign currency earnings from the sale of goods (works, services) on the territory of the Russian Federation are not entered into accounts in compliance with the procedure provided by the legislation of the Russian Federation on foreign currency regulation and currency control, the taxpayer shall submit to the tax authorities documents (copies) proving his right not to enter into the account foreign exchange earnings in the territory of the Russian Federation.
 Under foreign trade transactions of commodity swap (barter), the taxpayer shall submit to the tax authorities documents (their copy) proving the import of goods (performance of works, rendering of services) received under the aforesaid operations, in the territory of the Russian Federation and their entering into accounts;
  4)  documents stipulated by Subitems 3 and 4 of Item 1 of the present Article.
 3. In case of sale of goods stipulated by Subitem 1 of Item 1 of Article 164 of the present Code, towards the servicing of the debt of the Russian Federation and of the former USSR or to offset the extension of state credits to foreign states, the following documents shall be submitted to the tax authorities in order to prove the propriety of the application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions:
  1)  a copy of an agreement between the Government of the Russian Federation and the government of a corresponding foreign state on the settlement of indebtedness of the former USSR (the Russian Federation) or to offset the extension of state credits to foreign states;
  2)  a copy of an agreement between the Treasury of the Russian Federation and the taxpayer about the funding of deliveries of goods towards the repayment of state debt or to offset the extension of state credits to foreign states;
  3)  a bank abstract confirming actual receipt of proceeds from the sale of goods on export from the budget in the currency of the Russian Federation to an account of the taxpayer held with a Russian bank;
  4)  documents stipulated by Subitems 3 and 4 Items 1 of the present Article.
 4. In case of the sale of works (services) stipulated by Subitems 2 and 3 of Item 1 of Article 164 of the present Code, the following documents shall be submitted to the tax authorities in order to prove the propriety of application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions, unless otherwise is stipulated by Item 5 of the present Article:
  1)  a contract (copy of the contract) of the taxpayer with a foreign or Russian person to perform aforesaid works (to render aforesaid services);
  2)  a bank abstract confirming the actual receipt of proceeds from foreign or Russian person acting as the buyer of said works (services) to an account of the taxpayer held with a Russian bank.
 If the contract provides for settlement in ready cash, it is necessary to submit to the tax authorities a bank abstract proving the entering of the amounts received by the taxpayer into his account held with a Russian bank, and also copies of cash collection slips, confirming the actual receipt of proceeds from the foreign or Russian person, acting as the buyer of the aforesaid works (services).
 If foreign currency earnings from the sale of goods (works, services) on the territory of the Russian Federation are not entered into accounts in compliance with the procedure provided by the legislation of the Russian Federation on foreign currency regulation and currency control, the taxpayer shall submit to the tax authorities documents (their copies) proving his right not to enter into account the foreign exchange earnings in the territory of the Russian Federation;
  3)  the customs declaration (its copy) with marks of the Russian customs authority which has released the goods under the customs treatment of export or transit, and the border customs authority through which the goods were exported from the customs territory of the Russian Federation (imported into the customs territory of the Russian Federation in compliance with Subitems 2 and 3 Item 1 of Article 164 of the present Code). The provisions of the present Subitem shall be applied taking into account features stipulated by Subitem 3 of Item 1 of the present Article;
  4)  copy of transport, shipping and/or other documents proving the exportation of goods from the customs territory of the Russian Federation (the import of goods into the customs territory of the Russian Federation in compliance with Subitems 2 and 3 of Item 1 of Article 164 of the present Code). The provisions of the present Subitem shall be applied taking into account features stipulated by Subitem 4 of Item 1 of the present Article.
 5. In case of rendering by rail services in the carriage (transportation) of goods placed under the customs treatment of export and goods placed under the customs treatment of transit, the following documents shall be submitted to the tax authorities in order to prove the propriety of application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions:
  1)  if foreign currency proceeds are received in the currency account of the Ministry of Railways of the Russian Federation - settlement letters of the authorized body of the Ministry of Railways of the Russian Federation (their copies) on the distribution of foreign currency proceeds for the carriage of exported and transit goods;
  2)  if proceeds are received in the currency of the Russian Federation:
 bank abstracts (their copies) confirming actual receipt of the proceeds for rendered services in the carriage (transportation) of goods placed under the customs treatment of export, and goods placed under the customs treatment of transit, to an account of the railway with due regard to the peculiarities specified in Subitem 2 Item 1 and Subitem 3 Item 2 of the present article;
 Copies of the uniform international documents of carriage defining the route of carriage with details on the destination country and marks on the carriage of goods in the regime of "export of goods" ("transit of goods"). If goods placed under the customs treatment of export, and goods placed under the customs treatment of transit are exported by ships through seaports, a copy shall be submitted of inland carriage documents with details on the destination country and a mark on the carriage of goods in the "export of goods" ("transit of goods") regime, and also with a mark of the port on the acceptance of goods for further export (transit).
 6. In case of rendering services stipulated by Subitem 4 of Item 1 of Article 164 of the present Code, the following documents shall be submitted to the tax authorities in order to prove the propriety of application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions:
  1)  a bank abstract (its copy) confirming the actual receipt of proceeds from a Russian or foreign person for rendered services in an account of the Russian taxpayer held with a Russian bank with due regard to the peculiarities specified in Subitem 2 Item 1 and Subitem 3 Item 2 of the present article;
  2)  a register of the uniform international documents of carriage on the carriage of passengers and luggage which are to give details on the route and specify the departure and destination points.
 7. At the sale of works (services) stipulated by Subitem 5 of Item 1 of Article 164 of the present Code, the following documents shall be submitted to tax authorities in order to prove the propriety of application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions:
  1)  the contract (copy of the contract) of the taxpayer with foreign or Russian persons to perform works (render services);
  2)  a bank abstract confirming the actual receipt of proceeds from a Russian or foreign person for executed works (rendered services) in an account, of the taxpayer in the Russian bank with due regard to the peculiarities specified in Subitem 2 Item 1 and Subitem 3 Item 2 of the present article;
  3)  acts and other documents (their copies) confirming the performance of works (rendering of services) directly in outer space and also performance of works (rendering of services) that are technologically determined by and form an integral part of the works (services) performed (rendered) directly in outer space;
 8. In case of sale of goods stipulated by Subitem 6 of Item 1 of Article 164 of the present Code, the following documents shall be submitted to the tax authorities in order to prove the propriety of application of the 0 per cent tax rate (or peculiarities of taxation) and tax deductions:
  1)  the contract (copy of the contract) on the sale of precious metals or precious stones;
  2)  documents (their copies) confirming that precious metals or precious stones have been transferred to the State Fund of Precious Metals and Precious Stones of the Russian Federation, the Central Bank of he Russian Federation, banks.
 9. The documents (their copies) specified in Items 1 - 5 of the present Article shall be submitted by the taxpayers to prove the propriety of application of the 0 per cent tax rate upon the sale of goods (works, services) specified in Subitems 1 - 3 and 8 of Item 1 of Article 164 of the present Code, no later than within 180 days beginning from the date the regional customs authority registers the cargo customs declaration on the export of goods under the customs treatment of export or transit (the customs declaration on export of supplies under the customs treatment of movement of supplies).
 If upon expiration of 180 days beginning from the date the goods were released by the regional customs authorities in the mode of export or transit the taxpayer failed to submit said documents (their copies), the aforesaid operation on the sale of goods (performance of works, rendering of services) shall be taxable under the rates of 10 per cent or 18 per cent, accordingly. If subsequently the taxpayer submits to the tax authorities documents (their copies) justifying the application of the 0 per cent tax rate, then the paid amounts of the tax shall be returnable to the taxpayer in the manner and on conditions which are stipulated by Article 176 of the present Code.
 Provisions of the present Item shall not apply to taxpayers released from performance of the taxpayer obligation according to Article 145 of the present Code.
 10. The documents indicated in the present Article shall be submitted by taxpayers to justify the application of the 0 per cent tax rate simultaneously with the submission of the tax declaration.
 11. The order of confirmation of the right to receive reimbursement of the amount of tax with application of the 0 per cent tax rate concerning the goods moved across the border of the Russian Federation without customs control and customs clearance shall be defined by the Government of the Russian Federation.

Article 166. The Order of Calculation of the Tax


 1. The amount of tax when determining the tax base according to Articles 154 - 159 and 162 of the present Code shall be calculated as the percentage share corresponding to the tax rate of the tax base, and in case of separate record-keeping - as the amount of tax received as a result of additional amounts of taxes calculated separately as percentage shares of appropriate tax bases corresponding to tax rates.
 2. The total amount of tax in case of sale of goods (works, services) shall be defined as an amount resulting from additional amounts of tax calculated according to the order laid down by Item 1 of the present Article.
 3. The total amount of tax shall not be calculated by taxpayers being foreign organisations who are not registered with tax authorities as taxpayers. In such a case amount of tax shall be calculated by tax agents separately on each operation in the sale of goods (works, services) on the territory of the Russian Federation according to the order established by Item 1 of the present Article.
 4. The total amount of tax in case of sale of goods (works, services) shall be calculated by the results of each tax period as applied to all operations recognised as a tax basis under Subitems 1 - 3 Item 1 Article 146 of the present Code, the date of which sale (transfer) refers to the corresponding tax period taking into account all changes that increase or reduce the tax base over the appropriate tax period.
 5. The total amount of tax in case of import of goods to the customs territory of the Russian Federation shall be calculated as the percentage share of the tax base estimated according to Article 160 of the present Code and corresponding to the tax rate.
 If according to the requirements established by Item 3 of Article 160 of the present Code, the tax base shall be defined separately for each group of imported goods, then for each of the aforesaid tax bases the amount of tax shall be calculated separately according to the order established by paragraph one of the present Item. In doing so, the total amount of tax shall be calculated as the amount received as a result of addition of amounts of taxes estimated separately for each of such tax bases.
 6. The amount of tax on operations of sale of goods (works, services) taxed according to Item 1, Article 164 of the present Code under the 0 per cent tax rate shall be calculated separately on each such operation according to the order established by Item 1 of the present Article.
 7. If the taxpayer maintains no book-keeping or record-keeping of items of taxation, tax authorities shall have the right to calculate tax amounts payable on the basis of data available on other similar taxpayers.

Article 167. The Moment of Determining the Tax Base, When Selling (Transferring) Goods (Works and Services)


 1. For the purposes of the present Chapter, the moment of determining the tax base depending on the accounting policy adopted by the taxpayer for the purposes of taxation, unless otherwise is not stipulated by Item 6 - 11 of the present Article, shall be as follows:
  1)  for taxpayers who have approved in their accounting policy for the purposes of taxation the moment of determining the tax base as per shipment and presentation of settlement documents to the buyer - the date of shipment (transfer) of goods (works, services);
  2)  for taxpayers who have approved in their accounting policy for the purposes of taxation the moment of determining the tax base in accordance with the receipt of money resources, the day of payment of shipped goods (performed works, rendered services).
 2. For the purposes of the present Article, the payment of goods (works, services) shall be defined as the termination of the counter obligation of the buyer of aforesaid goods (works, services) to the taxpayer which is directly connected to the delivery (transfer) of these goods (performance of works, rendering of services) except for the termination of the counter obligation by the buyer-drawer issuing his own bill of exchange. The payment of goods (works, services), in particular shall be defined as:
  1)  receipt of funds in the accounts of the taxpayer or his commission agent, attorney or agent in a bank or in the cash department of taxpayer (commission agent, attorney or agent);
  2)  discharge of an obligation by offset;
  3)  transfer by the taxpayer of the right of demand to a third person on the basis of agreements or according to law.
 3. In cases when goods are not shipped or transported, but there is conveyance of property to these goods, such conveyance of property for the purposes of the present Chapter shall be equated to its sale.
 4. If in case of termination of the counter obligation of the buyer of goods (works, services) to pay for these goods (works, services) by the buyer-drawer transferring his own bill of exchanges as the payment of aforesaid goods (works, services) shall be recognized the payment by the buyer-drawer (or other person) of said bill of exchange or transfer by the taxpayer of aforesaid bill of exchange under the endorsement to a third person.
 5. If the buyer fails to perform prior to the lapse of limitation of actions under the right of demand of execution of the counter obligation involved in the delivery of goods (performance of works, rendering of services), the earliest of the following dates shall be recognized as the date of payment of goods (works, services):
  1)  the day of lapse of said period of limitation;
  2)  the day of writing-off debt receivable.
 6. In case of sale of goods (works, services) on a gratuitous basis, the moment of determining the tax base shall be defined as the day of shipment (transfer) of goods (performance of works, rendering of services).
 7. In case of sale by the taxpayer of goods transferred to him for storage as per a contract of warehouse storage involving the issue of the warehouse certificate, the date of sale of aforesaid goods shall be defined as the day of sale of the warehouse certificate.
 8. In case of the sale by a finance agent of services of financing with assignment of a monetary claim, and also in case of sale by a new creditor who has received the aforesaid demand of financial services, the moment of determining the tax base in respect of said services shall be defined as the day of the subsequent assignment of such claim or the performance by the debtor of such claim.
 9. When selling goods (works, services) stipulated by Subitems 1 - 3 and 8 of Item 1 of Article 164 of this Code, the moment of determining the tax base with regard to said goods (works, services) shall be the last day of the month in which a complete set of the documents provided for by Article 165 of this Code is prepared.
 Where a complete set of the documents provided for by Article 165 of this Code is not ready on the 181th day, as of the date of placing goods under the customs treatment of export, transit and movement of supplies, the moment of determining the tax base with regard to said goods (works, services) shall be determined in compliance with Subitem 1 of Item 1 of this Article.
 10. For the purposes of the present Chapter, the date of performance of civil and erection works for own consumption shall be defined as the day of entry in the records of the appropriate facility of completed capital construction.
 11. For the purposes of the present Chapter, the date of transfer of goods (performance of works, rendering of services) for one's own needs recognized as an item of taxation according to the present Chapter shall be defined as the day of performance of aforesaid transfer of goods (performance of works, rendering of services).
 12. The accounting policy adopted by the organization for the purposes of taxation shall be approved by appropriate orders and orders of the head of the organization.
 The accounting policy shall be applied for the purposes of taxation as of January 1 of the year following the year of the its approval by an appropriate order, order of the chief of the organization.
 The accounting policy for the purposes of taxation adopted by organization shall be obligatory for all separate units of the organization.
 The accounting policy for the purposes of taxation adopted by the newly founded organization shall be approved no later than the end of the first tax period. The accounting policy for the purposes of taxation accepted by the newly founded organization shall be considered as being applied from the date of creation of the organization.
 If a taxpayer is not certain as to what method he is going to use to determine the moment of determining the tax base for tax calculation and payment purposes the moment of determining the tax base specified in Subitem 1 Item 1 of the present article shall be applied.
 Individual businessmen for the purposes of this Chapter shall chose a way of defining the moment of determining the tax base and shall notify the tax bodies about it prior to the 20th day of the month next following an appropriate calendar year.

Article 168. The Amount of Tax Presented by the Vendor to the Buyer


 1. In case of sale of goods (works, services), the taxpayer in addition to the price (tariff) of sold goods (works, services) is obliged to present an appropriate amount of tax for payment to the buyer of these goods (works, services).
 2. The amount of tax presented by the taxpayer to the buyer of goods (works, services) shall be calculated on each kind of these goods (works, services) as the percentage share corresponding to the tax rate specified in Item 1 of the present Article of the prices (tariffs).
 3. In case of sale of goods (works, services), the relevant invoices shall be presented to the buyer not later than five days from the day of shipment of goods (performance of works, rendering of services).
 4. The appropriate amount of tax shall be stated in a separate line in settlement documents, including in the registers of cheques and registers to receive funds from the letter of credit, primary registration documents and in invoices.
 5. In case of sale of goods (works, services), the operations on which sale are not subject to taxation (are exempt from taxation), and also when according to Article 145 of the present Code a taxpayer is released from performance of the taxpayer obligation, the settlement documents and the primary registration documents shall be made out and invoices shall be submitted without pointing out the corresponding amount of tax. In so doing, the appropriate inscription shall be made or the stamp " Without the tax (VAT)" shall be affixed to said documents.
 6. In case of sale of goods (works, services) to the population at wholesale prices (tariffs) the appropriate amount of tax shall be included in said prices (tariffs). In so doing, the amount of tax shall not be stated on labels of goods and price tags which are handed out by vendors nor on receipts and other documents issued to buyers.
 7. In case of the sale of goods in cash by retail and public catering organisations (enterprises) and individual businessmen and also other organisations, individual businessmen performing works and providing services for a pay immediately to the general public, the requirement laid down by Items 3 and 4 of the present Article concerning registration of settlement documents and making out invoices shall be considered fulfilled if the vendor has issued to the buyer a cash voucher or another document of an established form.

Article 169. The Invoice


 1. An invoice is the document used as the basis to accept the presented amounts of tax for deduction or reimbursement in the order stipulated by the present Chapter.
 2. Invoices made out and issued in violation of the order established by Items 5 and 6 of the present Article can not constitute a ground to accept for deduction or reimbursement the tax amounts presented to the buyer by the vendor. Failure to meet the requirements to the invoice which are not stipulated by Items 5 and 6 of the present Article can not be the basis for the refusal to accept for deduction an amount of tax presented by the vendor.
 3. The taxpayer is obliged to make out the invoice, to keep log-books of received and issued invoices, books of purchases and books of sales, unless otherwise stipulated by Item 4 of the present Article:
  1)  in case of performance of operations defined as items of taxation according to the present Chapter including those not taxable (exempt from taxation) according to Article 149 of the present Code;
  2)  in other duly defined cases.
 4. Invoices shall not be made out by taxpayers on operations of sale of securities (except for broker and intermediary services), and also banks, insurance organizations and non-state pension funds on operations which are not taxable (exempt from taxation) according to Article 149).
 5. An invoice shall state:
  1)  the serial number and date of the invoice;
  2)  the name, address and identification numbers of the taxpayer and buyer;
  3)  the name and address of the consignor and consignee;
  4)  the number of the settlement document when an advance or other payments are received against future deliveries of goods (performance of works, rendering of services);
  5)  the name of the delivered (shipped) goods (description of the executed works, rendered services) and unit of measurements (where it is possible to indicate);
  6)  the quantity (volume) of goods (works, services) delivered (shipped) under the invoice on the basis of units of measurement accepted for it (where it is possible to indicate);
  7)  the price (tariff) per unit of measurement (where it is possible to indicate) under an agreement (contract) less the tax, and if state controlled prices (tariffs) are used, including the tax, with allowance for amounts of the tax;
  8)  the cost of goods (works, services) for the entire quantity of delivered goods (shipped) on the invoice (executed works, rendered services) less the tax;
  9)  the sum of excise duty levied on excisable goods;
  10)  the tax rate;
  11)  the amount of tax the buyer of goods (works, services) is charged which is defined on the basis of effective tax rates;
  12)  the cost of the entire quantity of goods delivered (shipped) (executed works, rendered services) under the invoice with allowance for the amount of tax;
  13)  the country of origin of goods;
  14)  the number of the cargo customs declaration.
 Information stipulated by Subitems 13 and 14 of the present Items shall be submitted concerning goods whose country of origin is not the Russian Federation. The taxpayer selling aforesaid goods shall be responsible only for the conformity of aforesaid information in the invoices presented by him to the information contained in the invoices received by him and in the shipping documents.
 6. The invoice shall be signed by the head and chief accountant of the organization or other officials authorized thereto by an order (by other administrative document) of the organization or by a letter of authority on behalf of the organization. When an invoice is drawn up by an individual businessman the invoice shall be signed by the individual businessman, and state the requisites of the state registration certificate of such individual businessman.
 7. In case when an obligation is denominated in a foreign currency under the terms of a deal, the amounts of money specified in an invoice, can be stated in foreign currency.
 8. The order of keeping a log-book of received and drawn up invoices, books of purchases and books of sales shall be established by the Government of the Russian Federation.

Article 170. The Order of Referring Tax Amounts to the Costs of Production and Sale of Goods (Works, Services)


 1. Amounts of tax a taxpayer is charged when buying goods (works, services) or actually paid by him when importing goods to the customs territory of the Russian Federation, unless otherwise established by provisions of the present Chapter, shall not be included in the expenses accepted for deduction when calculating the tax levied on profit of organizations (income tax of natural persons), except for cases stipulated by Item 2 of the present Article.
 2. Amounts of tax a taxpayer is charged, when buying goods (works, services), including fixed assets and intangible assets, or actually paid by him when importing goods, including fixed assets and intangible assets, to the territory of the Russian Federation, shall be included into the cost of such goods (works, services), and likewise of fixed assets and intangible assets, in the event of:
  1)  acquiring (importing) goods (works, services), including fixed assets and intangible assets, used for operations related to production and (or) sale (as well as to transfer of goods, carrying out works and rendering services for own needs) of goods (works, services) which are not taxable (exempt from taxation);
  2)  acquiring (importing) goods (works, services), including fixed assets and intangible assets, used for operations related to production and (or) sale of goods (works, services) whose place of sale is not recognized as the territory of the Russian Federation;
  3)  the acquisition (importation) of goods (works, services), in particular, fixed assets and intangible assets by persons not being taxpayers under the present chapter or relieved from the duty to act as a taxpayer in terms of tax calculation and payment;
  4)  acquiring (importing) goods (works, services), including fixed assets and intangible assets, for production and (or) sale of goods (works, services), the operations in sale or transfer of which are not recognized as a sale of goods (works, services) under Item 2 of Article 146 of this Code.
 3. If the taxpayer accepts the amounts of tax specified in Item 2 of the present Article for deduction or reimbursement in the order stipulated by the present Chapter, the appropriate amounts of tax shall be subject to recovery and payment to the budget.
 4. The amounts of tax, taxpayers making both taxable operations and those exempted from taxation are charged with by sellers of goods (works, services):
 shall be included into the cost of such goods (works, services) under Item 2 of this Article - with regard to goods (works, services), including fixed assets and intangible assets, used in operations on which the value-added tax is not levied;
 shall be deducted under Article 172 of this Code - with regard to goods (works, services), including fixed assets and intangible assets, used in operations on which the value-added tax is levied;
 shall be deducted or included into the cost thereof proportionally to their use for production and (or ) sale of goods (works, services), operations in sale of which are taxable (exempt from taxation) - with regard to goods (works, services) including fixed assets and intangible assets, used in both taxable operations and in those exempted from taxation.
 Said proportion shall be determined reasoning from the cost of shipped goods (works, services), operations in sale of which are taxable (exempted from taxation), as compared to the total cost of goods (works, services) shipped within a tax period.
 Separate accounting of amounts of the tax by the taxpayers who have transferred to payment of the uniform tax on imputed earnings for certain types of activity shall be carried out in a similar procedure.
 With this, a taxpayer shall be obliged to keep separate records of the amounts of tax with regard to acquired goods (works, services), including fixed assets and intangible assets, used in both taxable operations and those not subject to taxation (exempted from taxation).
 Where there are no separate records kept, the amounts of tax with regard acquired goods (works, services), including fixed assets and intangible assets, shall not be deducted and shall not be included into the expenses deducted in the course of calculating the profit tax on organizations (the income tax on natural persons).
 A taxpayer shall be entitled not to apply the provisions of this Item in respect of the tax periods where the share of aggregate expenditures with regard to production of goods (works, services), operations in sale of which are not taxable, does not exceed 5 per cent of the total amount of aggregate expenditure with regard to production. With this, the total amounts of the tax, such taxpayers are charged with by sellers of goods (works, services) used in production within said tax period, shall be subject to deduction in compliance with the procedure provided for by Article 172 of this Code.
 5. Banks, insurance institutions, and non-state pension funds shall have the right to include in the costs accepted for deduction when calculating tax levied on profit of organizations the amounts of tax paid to suppliers for the purchased goods (works, services). Here, the entire amount of tax received by them under taxable operations shall be payable to the budget.

Article 171. Tax Deductions


 1. The taxpayer shall have the right to reduce the total amount of tax computed according to Article 166 of the present Code by tax deductions established by the present Article.
 2. Subject to deductions shall be amounts of tax presented to the taxpayer and paid by him when purchasing goods (works, services) on the territory of the Russian Federation or paid by the taxpayer when importing goods to the customs territory of the Russian Federation under the customs treatment of release for free circulation, temporary import and processing outside of the customs territory, in relation to:
  1)  goods (works, services) purchased to carry out operations recognized as items of taxation according to the present Chapter, except for the goods specified by Item 2 of Article 170 of the present Code;
  2)  goods (works, services) purchased for resale.
 3. Subject to deductions shall be amounts of tax paid according to Article 173 of the present Code by buyers and the tax agents.
 Buyers and tax agents registered with the tax authorities and acting as taxpayers according to the present Chapter shall have the right to the aforesaid tax deductions. Tax agents making the operations indicated in Item 4 of Article 161 of this Code shall not be entitled to include into tax deductions the amounts of the tax paid in respect of these operations.
 The provisions of the present item shall be applicable if the goods (works, services) were acquired by a taxpayer being a tax agent for the purposes specified in Item 2 of the present article and if the taxpayer withheld and paid the tax out of the taxpayer's incomes when they were being acquired.
 4. Subject to deduction shall be amounts of tax presented by the vendors to a foreign person being a taxpayer not registered with tax authorities of the Russian Federation, when said taxpayer buys goods (works, services), or pays the foreign person when importing goods to the customs territory of the Russian Federation for his production purposes or for the accomplishment of his other activities.
 Said amounts of tax shall be subject to deduction or refund to a foreign person being a taxpayer after a tax agent pays the tax withheld from incomes of this taxpayer and only in the part in which the bought or imported goods (works, services) have been used in the production of goods (performance of works, rendering of services) sold by the tax agent who withheld the tax. The specified amounts of tax shall be subject to deduction or reimbursement, provided the foreign person acting as the taxpayer registers with the tax authorities of the Russian Federation.
 5. Subject to deductions shall be amounts of tax presented by the vendor to the buyer and paid by the vendor to the budget when selling goods, if these goods are returned (including during warranty period) to the vendor or such were rejected. Subject to deductions shall be amounts of tax paid when performing works (rendering services) if these works (services) are rejected.
 Subject to deductions shall be amounts of tax calculated by the vendors and paid by them to the budget from amounts of advance payments or other payments for goods (performance of works, rendering of services) sold on the territory of the Russian Federation in case of cancellation of the corresponding contract and return of the appropriate amounts of advance payments.
 6. There shall be subject to deduction the amounts of the tax, contract organizations (building owners) charge taxpayers with, when they carry out capital construction works, assemble (install) fixed assets, as well as the amounts of the tax, taxpayers are charged with regard to goods (works, services) acquired by them for carrying out building and assembly works and the amounts of tax, taxpayers are charged with, when they acquire incomplete capital construction objects.
 There shall be subject to deduction the amounts of tax calculated by taxpayers under Item 1 of Article 166 of this Code, when carrying out construction and assembly works for their own needs which cost is included into the expenditures subject to deduction (including depreciation charges), when calculating the profit tax of organizations.
 7. Subject to deductions shall be amounts of tax paid on expenses borne during business trips (expenses in travel to the place of the business trip and back, including expenses to use bed linen in overnight trains, and also expenses in renting housing) and representation expenses accepted for deduction when calculating the tax levied on profit of organizations.
 Where under Chapter 25 of this Code for the purposes of taxation expenditures are taken according to normative standards, the amounts of tax with regard to such expenditures shall be subject to deduction in the amount corresponding to such normative standards.
 8. Subject to deductions shall be amounts of tax calculated and paid by the taxpayer on amounts of advance payments or other payments received against future deliveries of goods (works, services).

Article 172. The Order of Application of Tax Deductions


 1. Tax deductions stipulated by Article 171 of the present Code shall be made on the basis of invoices drawn up by vendors when taxpayers buy goods (works, services), documents confirming that tax amounts have been actually paid, documents confirming the payment of the tax amounts withheld by tax agents, or on the basis of other documents in cases set forth in Items 3, 6-8 of Article 171 of the present Code.
 Subject to deductions shall be, unless otherwise established by the present Article, only amounts of tax presented to a taxpayer and paid by him when he was acquiring goods (works, services) or when the amounts actually paid by them when importing goods to the customs territory of the Russian Federation after aforesaid goods (works, services) are entered into records, with due regard to features laid down by the present Article and provided appropriate primary documents are submitted.
 Deductions of tax amounts presented by vendors to the taxpayer when he buys or pays for fixed assets and/or intangible assets specified in Items 2 and 4 of Article 171 of the present Code and imported to the customs territory of the Russian Federation, shall be effected in full after said fixed assets and/or intangible assets are entered into records.
 2. In case the taxpayer uses his own property (including bills of exchange of a third person) as settlement for goods (works, services) he had bought, the amounts of tax actually paid by the taxpayer when buying said goods (works, services) shall be calculated on the basis of balance costs of such property (with allowance for its revaluation and amortization performed according to the legislation of the Russian Federation) transferred towards payment for such.
 If the taxpayer - drawer uses his own bill of exchange (or bills of exchange of a third person received in exchange for his own bill of exchange) in the settlement for the goods (work, service) bought by him, the amount of tax actually paid by the taxpayer - drawer when acquiring aforesaid goods (works, services) shall be calculated on the basis of amounts actually paid by him settling his own bill of exchange.
 3. The deductions of tax amounts stipulated by Article 171 of the present Code concerning operations in the sale of goods (works, services) specified in Item 1 of Article 164 of the present Code shall be made only if appropriate documents stipulated by Article 165 of the present Code are submitted to the tax authorities.
 Deductions of tax amounts stipulated by the present item shall be made on the basis of a separate tax declaration required by Item 7 of Article 164 of the present Code.
 4. Deductions of tax amounts specified in Item 5 of Article 171 of the present Code shall be made in full after appropriate adjustment operations involved in the return of goods or rejection of goods (works, services) have been entered in the records, but no later than one year from the time of the return or rejection.
 5. The deductions of tax amounts specified in Paragraph One of Item 6 of Article 171 of the present Code shall be made, as appropriate projects of completed capital construction (fixed assets) or sale of an uncompleted capital construction project are entered into records, from the moment indicated in Paragraph Two of Item 2 of Article 259 of this Code or when selling objects of incomplete capital construction.
 Deductions of the amounts of tax indicated in Paragraph Two of Item 6 of Article 171 of this Code shall be made as the tax calculated by taxpayers in respect of construction and assembly works carried out for own needs is paid to the budget in compliance with Article 173 of this Code.
 6. The deductions of tax amounts specified in Item 8 of Article 171 of the present Code shall be made after the date of sale of appropriate goods (performance of works, rendering of services).

Article 173. The Amount of Tax Payable to the Budget


 1. The amount of tax payable to the budget shall be calculated on the basis of results of each tax period as an amount reduced by the amount of tax deductions stipulated by Article 171 of the present Code (except for tax deductions stipulated by Item 3 of Article 172 of the present Code) being the overall amount of the tax calculated according to Article 166 of the present Code.
 The amount of tax payable to the budget under operations of sale of goods (works, services) specified in Subitems 1 - 8 of Item 1 of Article 164 of the present Code shall be defined on the basis of results of each tax period as an amount of tax calculated according to Item 6 of Article 166 of the present Code and reduced by the amount of tax deductions stipulated by Item 3 of Article 172 of the present Code.
 2. If the amount of tax deductions over any tax period exceeds the total amount of tax computed according to Article 166 of the present Code, the positive difference between the amount of tax deductions and the sum of tax computed with regard to the operations recognized as units of taxation under Subitem 1 and 2 of Item 1 of Article 146 of this Code, shall be subject to reimbursement to taxpayers in the procedure and on the conditions which are stipulated by Article 176 of this Code, safe for the cases when taxpayers submit tax declarations on the expiry of three years after the end of an appropriate tax period.
 An excess of amounts of tax deductions stipulated by Item 3 of Article 172 of the present Code over amounts of tax calculated according to Item 6 of Article 166 of the present Code shall be reimbursable to the taxpayer in the order and on the conditions which are stipulated by Article 176 of the present Code, safe for the cases a tax declaration is submitted by a taxpayer on the expiry of three years after the end of an appropriate tax period.
 3. The amount of tax payable if goods are imported to the customs territory of the Russian Federation shall be calculated according to Item 5 of Article 166 of the present Code.
 4. In case of sale of goods (works, services) specified in Article 161 of the present Code, the amount of tax payable to the budget shall be calculated and paid in full by tax agents defined in Article 161 of the present Code, at the expense of funds subject to transfer to the taxpayer or other persons as directed by the taxpayer.
 5. The amount of tax payable to the budget shall be calculated by the following persons if they invoice the buyer and state separately the tax amount:
  1)  by persons who are not taxpayers, or by taxpayers released from discharge of the taxpayer obligations involved in the calculation and payment of tax;
  2)  by taxpayers, when selling goods (works, services) and when operations in selling them are not taxable.
 Here, the amount of tax payable to the budget shall be defined as the amount of tax indicated in the appropriate invoice handed in to the buyer of goods (works, services).

Article 174. The Order and Terms of Payment of Tax to the Budget


 1. The payment of tax in respect of transactions recognised as tax basis in compliance with Subitems 1 - 3 Item 1 Article 146 of the present Code, on the territory of the Russian Federation shall be effected according to the results of each tax period and on the basis of actual sale (transfer) of goods (performance of works, including those for own needs, rendering of services, including those for own needs) over the lapsed tax period no later than the 20th day of the month following the lapsed tax period, unless otherwise is stipulated by the present Chapter.
 If goods are imported to the customs territory of the Russian Federation, the amount of tax payable to the budget shall be paid according to the customs legislation.
 2. The amount of tax payable to the budget under operations of sale (transfer, performed, rendered for own needs) goods (works, services) on the territory of the Russian Federation shall be paid at the place of registration of the taxpayer with tax authorities.
 3. The tax agents (organizations and individual businessmen) shall pay the amount of tax at the place of their location.
 4. The payment of tax by persons specified in Item 5 of Article 173 of the present Code shall be made on the basis of results of each tax period according to the appropriate sale of goods (works, services) over the lapsed tax period no later than the 20th day of the month following xthe completed tax period.
 In the cases of the realisation of works (services), whose place of realisation is the territory of the Russian Federation, by taxpayers that are foreign persons not registered at the tax bodies as taxpayers, the payment of the tax shall be made by the tax agents simultaneously with the payment (transfer) of the monetary funds to such taxpayers.
 The bank servicing the tax agent may not accept there from the order for the transfer of the monetary funds in favour of such taxpayers if the tax agent has not submitted to the bank also an order for the payment of the tax from an account opened in that bank if the monetary funds are sufficient for paying the whole tax amount.
 5. Taxpayers (tax agents), including those listed in Item 5 of Article 173 of the present Code are obliged to submit to the tax authorities at the place of their registration an appropriate tax declaration no later than the 20th day of the month following the lapsed tax period, unless otherwise stipulated by the present Chapter.
 6. Taxpayers who over a quarter generate monthly proceeds from the sale of goods (works, services), disregarding the tax, the former not exceeding 1 mil. roubles shall have the right to pay the tax on the basis of actual sale (transfer) of goods (performance of works, including those for own needs, rendering of services, including those for own needs) for the completed quarter no later than the 20th day of the month following the lapsed quarter.
 Taxpayers making quarterly tax payments shall submit their tax declaration no later than the 20th day of the month following the lapsed quarter.

Article 175. Deleted



Article 176. The Order of Tax Reimbursement


 1. If, on the basis of results of a tax period, the amount of tax deductions exceeds the total amount of tax computed in respect of the transactions recognised as tax basis under Subitems 1-2 Item 1 Article 146 of the present Code, the received difference shall be subject to reimbursement (offset, return) to the taxpayer according to the provisions of the present Article.
 2. The said amount shall be allocated within three calendar months following the past tax period towards performing under the taxpayer's duties to pay taxes and fees, in particular the taxes payable in connection with the movement of goods across the customs border of the Russian Federation, towards the payment of penalty, repayment of arrears, tax sanction amounts adjudged to the taxpayer and subject to entry in the same budget.
 The tax bodies shall accomplish the offset on their own and they shall do it in agreement with the customs bodies when it concerns the taxes payable in connection with the movement of goods across the customs border of the Russian Federation, with taxpayer being notified about the offset within ten days after the date when it was accomplished.
 3. Upon the expiration of three calendar months following the past tax period the amount which has not be taken into account shall be subject to refund for the benefit of the taxpayer on his written application.
 Within two weeks after receipt of aforesaid application, the tax authorities shall decide as to a repayment the said amount for the benefit of the taxpayer from an appropriate budget and within the same time shall direct this decision for performance to a corresponding body of the federal treasury. Aforesaid amounts shall be repaid by bodies of the federal treasury.
 The amounts shall be returned by bodies of the federal treasury within two weeks starting from the day of receipt of aforesaid decision of the tax authority. If such decision is not received by the appropriate body of federal treasury within seven days starting from the day it was sent by the tax authorities, the eighth day starting from the day such decision was sent by the tax authorities shall be defined as the receipt date of such a decision.
 If the deadlines established by the present Item for an amount returnable to the taxpayer are not kept, interest shall be charged on the basis of one three hundred sixtieth of the refinancing rate of the Central Bank of the Russian Federation per deferment day.
 4. The amounts stipulated by Article 171 of the present Code concerning operations in the sale of goods (works, services) stipulated by Subitems 1 - 6 and 8 of Item 1 of Article 164 of the present Code, and also amounts of tax calculated and paid according to Item 6 of Article 166 of the present Code shall be liable to offset (refund) on the basis of a separate tax declaration specified in Item 6 of Article 164 of the present Code and documents stipulated by Article 165 of the present Code.
 The reimbursement shall be made no later than three months from the day of submission by the taxpayer of the tax declaration specified in Item 6 of Article 164 of the present Code and documents stipulated by Article 165 of the present Code.
 During aforesaid time the tax authorities shall check the justification of the application of the 0 per cent tax rate and tax deductions and take a decision to reimburse by offset or refund the appropriate amounts or to refuse (in full or partially) to reimburse.
 If the tax authorities decided to refuse (in full or partially) to reimburse, they are to provide the taxpayer with the motived conclusion no later than 10 days after said decision was taken.
 If during the established period the tax authorities have not decided whether to refuse and/or aforesaid conclusion was not presented to the taxpayer, the tax authorities are obliged to accept a compensation award to an amount to which the decision to refuse was not taken and to notify the taxpayer on the decision taken within ten days.
 If the taxpayer has any arrears and fines on the tax, arrears and fines on other taxes and fees, or indebtedness on the awarded tax sanctions subject to transfer to the same budget from which the reimbursement is being made, by decision of the tax authority, they shall be offset in the order of priority.
 The tax authorities shall offset the aforesaid and inform the taxpayer thereof within 10 days.
 If the tax authorities decided on a compensation award, if there are arrears on the tax accrued during a period between the declaration submission date and the date of reimbursement of the appropriate amounts and which does not exceed an amount to be reimbursed by decision of tax authorities, no fine on the arrears shall be charged.
 If the taxpayer has no arrears or fines on the tax, any arrears and fines on other taxes and also any indebtedness on awarded tax sanctions subject to transfer to the same budget from which the refund is made, the amounts to be reimbursed shall be offset against current payments on the tax and/or other taxes and fees payable to the same budget, and also on the taxes paid in connection with the movement of goods across the customs border of the Russian Federation and in connection with the sale of works (services) associated directly with the production and sale of such goods, as agreed with the customs authorities, or are to be returned to the taxpayer upon his application.
 No later than the last day of the time specified in paragraph two of the present Item, the tax authorities shall take a decision to return tax amounts from the appropriate budget and within the same deadline it shall forward this decision for execution to the appropriate body of the federal treasury.
 Bodies of the federal treasury shall refund the amounts within two weeks after they receive the decision of the tax authorities. If such decision is not received by an appropriate body of the federal treasury within seven days starting from the day it was forwarded by the tax authorities, the date of receipt of such a decision shall be recognized as the eighth day starting from the day it was forwarded by the tax authorities.
 If the deadlines established by the present Item for an amount refundable to the taxpayer are not kept, interest shall be charged on the basis of the refinancing rate of the Central Bank of the Russian Federation.

Article 177. The Terms and Order of Payment of Tax in Case of Import of Goods to the Customs Territory of the Russian Federation


 Terms and order of payment of tax in case of import of goods to the customs territory of the Russian Federation shall be established by the customs legislation of the Russian Federation with allowance for provisions of the present Chapter.

Article 178. Deleted


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