Source Pravda.Ru

Putin on new VAT procedures

Russia's losses connected with switching to the system of collecting the VAT in the country of consignment will reach $800m. Russian President Vladimir Putin made a corresponding statement at a briefing after a summit of the heads of states, members of the Common Economic Area. "We have made this step consciously," he said meaning that such policies would lead to an increase in trade between the members of the Common Economic Area (Ukraine, Russia, Belarus and Kazakhstan).

As reported earlier, the members of the Common Economic Area agreed that starting January 1, 2005, the VAT would be collected in the country of consignment. This will concern natural gas, oil and gas condensate as well.

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