vlag UK

From July 1, 2021, companies in Russia should for B2B traceable goods issue and receive e-invoices.

B2B e-invoicing in Russia is since 2012 voluntary. The President of the Russian Federation signed on November 9, 2020 the Federal Law No. 371-FZ. The Russian Tax Code introduces new mandatory e-invoicing for taxpayers dealing with traceable goods on July 1, 2021.

The traceability system monitors movements of specific goods imported into Russia and the Eurasian Economic Union (EAEU). At the moment of import, each good is assigned a batch registration number (BRN). That number remains crucial during all transaction stages.

The goods included in the list of traceable goods are in sectors such as the retail, pharmaceutical, and automotive industries and include refrigeration and freezing equipment, industrial trucks, washing and drying machines, monitors and projector equipment, integrated electronic circuits and elements, baby strollers and child safety seats.

Companies should set up solid internal processes and IT systems, including adding BRNs to VAT invoices and other primary accounting documents, to prepare and file reporting according to the Russian tax requirements. Companies have to provide VAT invoices during a tax audit. Underpayment of VAT or customs duties can result in tax assessments increased with tax penalties.

Russia has an aim to build a national track and trace system. Russia aims to have 95% of invoices and 70% of transport and goods waybills issued in an electronic format.

SAP add-on via clearance model

Roadmap to Tax and IT function effectiveness

KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and does not change existing customer SAP functionality or processes. It is fully configurable with custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT provides also S/4 HANA transformation support.

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