Russia’s parliament ratifies protocol with Belarus on levying service taxes

The Russian parliament has completed ratification of the Belarusian-Russian protocol on levying indirect taxes on services. On March 19 the document was ratified by the Council of Federation, or upper chamber of the Russian parliament. The document was passed by the Russian State Duma on March 7. The agreement between the governments of Belarus and Russia on the principles of levying indirect taxes in exports and imports of goods, services came into force on January 1, 2005. The issue relating to the levying of indirect taxes in services remained unsettled until now. The protocol will enable Belarus and Russia to apply the country of destination principle in trade of goods and services. VAT will be levied in the country where the works (services) are performed. The protocol also determines the notions of immovable property, movables, transport means, engineering and information processing services.