Frequently asked questions about Russia VAT

The information below should apply when services are purchased directly from Zoom. Should you purchase Zoom’s services via a reseller in Russia please refer to your reseller for any additional VAT questions.

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in Russia. It is a consumption tax because it is ultimately borne by the final consumer.

Who must pay VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.

In certain situations, VAT is payable by the tax agent, e.g. if VATable supplies of goods (works, services) are performed by a foreign entity that is not registered for tax purposes in Russia. However, this should not apply to the services provided by Zoom.

As of October 1, 2022, where a foreign organization (such as Zoom) provides electronically supplied services to customers that are registered for VAT in Russia, Zoom will not charge VAT on those services.

If you are a business customer, you should provide your Russian VAT number to Zoom. If the VAT number is valid and you confirm that you are registered for VAT in Russia, then no VAT will be charged on the supplies made to you by Zoom.

If you are a non-business customer then VAT will be charged on the services provided to you by Zoom.

Why am I being charged VAT?

Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the rules concerning Electronically Supplied Services (ESS) in Russia. As such, Zoom is required to collect Russian VAT on supplies made to customers that are not VAT registered in Russia.

How is Zoom determining which customers Russian VAT applies to?

If a customer's ‘Sold To’ location is in Russia and the customer has not provided a valid VAT Number Zoom will charge Russian VAT on its invoices.

This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.

It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.

What is a VAT Identification Number (VAT ID)?

A VAT Identification Number (VAT ID) is a unique number issued by the Russian tax authorities to VAT registered taxpayers in Russia in the format of a 10 or 12 digit number.

How do I enter my VAT number?

To provide your VAT number, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.

Zoom performs periodic validation checks of customer VAT numbers to ensure that the VAT number remains valid. If, during these periodic validations, it is identified that your VAT number is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid VAT number is provided.

Where you don't provide a VAT number, if Zoom finds sufficient evidence that you are an active tax registered business, Zoom may treat the supply as a B2B supply. In this scenario you may be required to declare and pay VAT under the “reverse charge” (tax agent) mechanism in your VAT return.

You are required to notify us if there is a change to your business registration status.

Is there a minimum threshold purchase amount before VAT is applied?

No, where a customer in Russia has not provided a valid Russian VAT number, Zoom will charge VAT on all supplies made to you.

Does Zoom provide VAT exempt or non-VATable services?

No, all services currently provided by Zoom to customers that are not VAT registered in Russia are subject to Russian VAT.

Are there any special exemptions applicable for charities under which VAT may not be charged?

No, there are no exemptions from VAT available under Russian VAT rules for the services Zoom supplies to charities in Russia. If you have any questions regarding a tax exemption in Russia, please contact Billing.

Are there any VAT obligations for me as a customer?

If you have provided a valid VAT number to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to declare and pay VAT under the “reverse charge” (tax agent) mechanism in your VAT return.

What if I have a VAT number and forget to enter it?

The VAT number can be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no valid VAT number is entered at the time the next invoice is issued, VAT will be charged until a valid VAT number is entered.

If a valid VAT number is entered and VAT has previously been charged on the invoices issued to you, then upon request by you, Zoom may refund any VAT included on invoices issued in the thirty days prior to a valid VAT ID being provided. However, VAT will not be refunded on any invoices issued outside of this thirty-day period.

Decision tree – My “Sold To” address is Russia, will I be charged VAT?

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.