of October 3, 2022
About the general principles of the taxation on indirect taxes
The Republic of Belarus and the Russian Federation which are hereinafter referred to as by the Parties
for the purpose of deepening of economic cooperation, exception of the factors distorting conditions of neutrality of indirect taxes and the equal competition of business entities of the Parties, elimination of tax barriers in mutual trade and investments, and also other forms of economic cooperation of business entities, ensuring integrity of fiscal base of the Parties and forming of common information space for end-to-end data analysis on the value added tax, system cooperation and mutual aid of tax authorities of the Parties in counteraction to evasion from payment of indirect taxes including in case of cross-border trade,
agreed as follows:
1. The parties bring the tax legislation concerning the value added tax and excises into compliance with Articles 4 and 5 of this Agreement till January 1, 2023.
2. If other is not provided by Articles 4 or 5 of this Agreement, further the Parties annually, till January 1 of the next year, bring the tax legislation concerning the value added tax and excises into compliance with provisions of this agreement according to the procedure and on conditions which are provided by this Agreement.
3. This Agreement does not limit the Party in the right to independently establish elements of the taxation and the rule of tax administration which are not provided by Articles 4 and 5 of this Agreement in the tax legislation.
4. Accomplishment by the Parties of the obligations specified in Items 1 and 2 of this Article proves to be true according to the procedure, stipulated in Article the 11th this Agreement.
5. Appendices No. 1-8 to this Agreement are its integral part.
1. Action of this Agreement extends to the legal relationship regulated by the tax legislation of the Parties about the value added tax and excises and does not affect other taxes and fees.
2. Action of this Agreement extends to the relations between the Parties and does not govern the relation between the Parties and taxpayers, charges (duties) of the Republic of Belarus, taxpayers of the Russian Federation (further - taxpayers).
3. For tax purposes taxpayers apply provisions of the tax legislation of the Parties, but not provisions of this agreement.
4. Provisions of this agreement do not affect the rights and obligations of the Parties according to other international treaties signed by them.
1. Competent authorities are the state bodies of the Parties authorized by the government of each of the Parties on implementation of these or those actions which are subject of this agreement within the competence established by the legislation of each of the Parties (further - competent authorities).
The parties inform each other on the list of competent authorities in writing through diplomatic channels within 30 working days following behind day of entry into force of this Agreement.
The terms established by this Agreement for accomplishment by the Party of the obligation assigned to it in the working days are estimated by the legislation of the relevant Party.
2. In case of change of the competent authorities or their names the Party within 10 working days following behind day after such change informs on it other Party in writing through diplomatic channels.
1. The parties in the tax legislation establish excises on all goods and services according to the minimum list of excise goods and services provided by appendix No. 1 to this Agreement and also establish the tax rates on excise goods and services in sizes not lower than the sizes of the minimum rates established by appendix No. 2 to this Agreement and determined according to Item 3 of this Article taking into account the existing decisions of the Supranational Tax Committee made according to Items 6 and 7 of this Article.
The parties can supplement the list of excise goods and services in the tax legislation and to establish rates of excises on them, and also to establish rates of excises in sizes higher than the sizes of minimum rates on the excise goods and services provided by appendix No. 1 to this Agreement.
2. Rates of excises in national currency for 2023 and 2024 are established by the Parties no later than December 31, 2022 and on December 31, 2023 respectively in the sizes not lower than the sizes specified in appendix No. 2 to this Agreement.
At the same time compliance of rates of the excises established by the tax legislation of the Belarusian Side to their minimum admissible level provided by appendix No. 2 to this Agreement is determined based on the official rate of the Belarusian ruble in relation to Russian ruble established by the Central bank of the Russian Federation for September 1 of the year preceding year in which the corresponding rates of excises are applied.
3. Minimum rates of excises on the goods and services specified in appendix No. 1 to this Agreement for 2025 and each next year in Russian rubles are determined by indexation of the corresponding minimum rates operating for the end of previous year on the expectational inflation level by the official forecast of social and economic development of the Russian Federation for each such next year if other is not established by this Item.
Minimum rates of excises in the Republic of Belarus on cigarettes and cigarettes I of price group for 2025 and each next year are determined as the work of minimum rates of excises on cigarettes and cigarettes II of price group for the corresponding year and the coefficient equal to 0,85 for 2025, 0,9 - for 2026, 0,95 - for 2027, 1 - for 2028 and the next years.
4. Rates of excises on the goods and services specified in appendix No. 1 to this Agreement for 2025 and each next year established by the tax legislation of the Parties cannot be below the corresponding minimum rates determined according to Item 3 of this Article taking into account the existing decisions of the Supranational Tax Committee made according to Items 6 and 7 of this Article.
Compliance of rates of the excises established by the tax legislation of the Belarusian Side to their minimum admissible level is determined according to the procedure, similar to the procedure specified in Item 2 of this Article.
5. Releases, privileges on payment of excises concerning the goods and services specified in paragraph one of Item 1 of this Article are allowed only in the cases provided by appendix No. 3 to this Agreement or the existing decisions of the Supranational Tax Committee made according to Items 6 and 7 of this Article.
At the same time for the purpose of this Agreement the deductions or other similar rules allowing the taxpayer to reduce the amount of the estimated excise are not considered as privilege on payment of excises.
6. The supranational Tax Committee based on the motivated appeal of the government of the Party (the governments of the Parties) or competent authorities makes the decision on modification in:
the minimum list of excise goods and services provided by appendix No. 1 to this Agreement;
the sizes of the minimum tax rates on excise goods and services provided by appendix No. 2 to this Agreement;
the list of releases, privileges on payment of excises provided by appendix No. 3 to this Agreement;
procedure and (or) the amount of indexation of minimum rates of excises on goods and services, stipulated in Item 3 these Articles.
The specified decision is drawn up by the protocol according to the procedure, stipulated in Item 4 Articles 10 of this Agreement, and becomes effective from signature date of the protocol if other date of application of its provisions is not determined in the protocol.
Such decision of the Supranational Tax Committee is the basis for inclusion of the provisions determined in it in the tax legislation of the Parties (one of the Parties if the decision concerns only this Party), and also in this Agreement.
If within 18 months from the date of entry into force of the decision corresponding changes are not made to this Agreement, the decision of the Supranational Tax Committee is considered invalid from the 1st following after month of the end of the specified period.
The party (Parties) within 6 months from the date of loss of force of the Supranational Tax Committee specified decisions excludes (exclude) regulations from the tax legislation, made based on this decision.
Application of these regulations by the Party (Parties) within the specified 6 months is not violation of provisions of this agreement.
7. The supranational Tax Committee based on the motivated appeal of the government of the Party (the governments of the Parties) or competent authorities makes the decision on right of the Party (Parties) to take the temporary measures which are not corresponding to provisions of this Article necessary for protection of essential economic interests of the Party (Parties), for a period of up to 6 months. The specified decision is drawn up by the protocol according to the procedure, stipulated in Item 4 Articles 10 of this Agreement, and becomes effective from signature date of the protocol if other date of application of its provisions is not determined in the protocol.
8. Concerning the excise goods specified in Items 1-8 of appendix No. 1 to this Agreement, the Parties cannot establish the deductions or other rules allowing the taxpayer to reduce the amount of the estimated excise.
9. Provisions of Item 8 of this Article do not extend to amount deduction:
the excise paid by the taxpayer in case of acquisition of the excise goods used by it as raw materials for production of excise goods;
the excise paid by the taxpayer in case of return by the buyer of excise goods (except for the alcoholic products specified in Item 1 of appendix No. 1 to this Agreement), including return during warranty period, or refusal of them;
advance payment of the excise provided by the tax legislation of the Parties.
1. The parties in the tax legislation establish tax releases, privileges on the value added tax only in the relation:
categories of the taxpayers exempted from the value added tax, provided by appendix No. 4 to this Agreement;
transactions (turnovers) exempted from the value added tax, provided by appendix No. 5 to this Agreement;
transactions (turnovers), liable to the value added tax at the lowered rate (except for zero rate), provided by appendix No. 6 to this Agreement;
transactions (turnovers), liable to the value added tax on zero rate, provided by appendix No. 7 to this Agreement.
Obligations concerning transactions (turnovers) specified in paragraph five of this Item do not extend to transactions (turnovers), liable to the value added tax on zero rate:
in case of commodity export;
when rendering services in international delivery;
when rendering the exported transport services;
when rendering the forwarding services connected with the organization and (or) ensuring international delivery;
when rendering services in provision of railway rolling stock and (or) containers for implementation of international delivery;
when rendering other services, works (by transfer of property rights) within the agreements in foreign trade signed with the foreign organizations or citizens.
2. If other is not stipulated in Item 5 or 6 these Articles, and also this Item, each of the Parties does not supplement in the future category of taxpayers and inventories (works, services) specified in Item 1 of this Article.
Are not considered as amendment of category of taxpayers and lists of transactions (turnovers) specified in Item 1 of this Article, introduction of releases by one Party, privileges on the value added tax of similar subjects which for signature date of this Agreement were absent in its tax legislation, but contained in the tax legislation of other Party.
The competent authorities of the Party which made the decision on introduction of such releases, privileges on the value added tax inform competent authorities of other Party and the Supranational Tax Committee according to the procedure, stipulated in Item 2 Articles 7 of this Agreement.
Within 24 months from the date of entry into force of the regulatory legal act specified in paragraph three of this Item, its provisions are subject to inclusion in the corresponding appendix (appendices) to this Agreement.
If before completion of the term specified in paragraph four of this Item, corresponding changes are not made to this Agreement, the Party to the 1st day of the 25th month from the effective date of the specified regulatory legal act excludes such privileges and releases on the value added tax from the tax legislation. At the same time the requirement to regulation exception of the tax legislation of the Party is not applied to the Party which took exhaustive measures for completion of interstate procedures for entering into this Agreement of the changes corresponding to provisions of the regulatory legal act adopted by the Party.
3. The obligations of the Parties listed in Items 1 and 2 of this Article do not limit their right to unilaterally exclude transactions (turnovers) exempted from the value added tax and (or) assessed on the lowered tax rates (including the zero rate of the value added tax determined in paragraph five of Item 1 of this Article).
4. The parties do not reduce rate of the value added tax in the amount of 20 percent (further - the standard tax rate) and the lowered rate in the amount of 10 percent, established in the tax legislation.
At the same time the Parties can raise the specified rates of the value added tax, including concerning separate transactions (turnovers) or categories of taxpayers.
5. The parties can determine in the limiting tax legislation the sum of revenue (income) from sales of goods, works, services, from alienation (transfer) of property rights in case of which not exceeding within calendar year taxpayers or their separate categories are exempted from obligation on calculation and the tax discharge on value added.
For 2023 such limiting amounts of revenue (income) do not exceed:
270 million Russian rubles - for the organizations and individual entrepreneurs in the Russian Federation;
3 000 000 and 1 000 000 Belarusian rubles respectively - for the organizations and individual entrepreneurs in the Republic of Belarus.
Violation of provisions of this Item by the Parties establishment specified in the limiting this Item of the amount of revenue (income) for 2024 and the next years in the amount of which is not exceeding the limiting amount of revenue (income) for 2023 increased by the rate of inflation according to the official forecast of social and economic development (forecast index of growth of consumer prices) of the Party which is saved up from January 1, 2023 to the corresponding year is not considered as.
6. The supranational Tax Committee based on the motivated appeal of the government of the Party (the governments of the Parties) or competent authorities makes the decision:
about change of the group of people and lists of transactions (turnovers) specified in Item 1 of this Article;
about right of the Party (Parties) to take the temporary measures which are not corresponding to provisions of this Article necessary for protection of essential economic interests of the Party (Parties), for a period of up to 6 months.
The specified decision of the Supranational Tax Committee becomes effective and is effective according to the procedure, specified in Items 6 and 7 of Article 4 of this Agreement, respectively.
7. The parties will aim at further harmonization of the rules of collection of the value added tax established by their tax legislation including in case of establishment of persons and transactions (turnovers) exempted from the value added tax and transactions (turnovers), liable to the value added tax on the lowered or zero tax rates.
1. The parties, proceeding from mutual recognition of the existing systems of administration of indirect taxes, for the purpose of increase in efficiency of administration of the value added tax, including concerning cross-border transactions, create the Integrated system of administration of indirect taxes (further - ISA of KN).
Tax authorities of the Parties perform use of ISA of KN through access to the national segments of ISA of KN.
2. The Russian side performs maintenance of ISA of KN before its transfer to ownership and management of the Union State if such decision is made by the Parties or according to their order the governments of the Parties.
Exclusive right on the intellectual property items used in ISA of KN, and also results of works on its development belong to the Russian Federation on behalf of the competent authority authorized by it.
For the purpose of ensuring functioning of ISA of KN competent authorities provide the conclusion of the civil agreement on provision in free use to competent authority of the Belarusian Side of the software necessary for work of the Belarusian national segment of ISA of KN, the components of program hardware complex providing information exchange between segments of ISA of KN (further - the PACK ICES components), and also about provision to competent authority of the Belarusian Side of non-paid consultations on use of the specified software for at least 3 years from the date of transfer of such rights.
Provision of the right to non-paid use of the software, the PACK ICES components and non-paid provision of consultations on use of the software are not considered as foreign free aid according to the legislation of the Belarusian Side.
The Russian side provides diagnostics, repair and replacement (if necessary) of the PACK ICES components in case of their exit out of operation, and also installation of updates and corrections of the software the PACK ICE throughout all term of use by tax authorities of national segments of ISA of KN.
3. Tax authorities of the Parties provide receipt in ISA of KN of all information necessary and sufficient for operating control behind the tax discharge on value added, including information on taxpayers of the value added tax and the transactions made by them (further - information). The Rekvizitny structure of information is determined in appendix No. 8 to this Agreement.
Information has the status of tax secret according to the legislation of the Party in the territory of which information is used. The mode of information access of employees of tax authorities of the Parties is approved by tax authorities of the Parties.
The data containing in ISA of KN received including as a result of processing of information which arrived in it can be used by tax authorities of the Parties for the purpose of tax control, including for holding the coordinated and other control actions approved by the Parties, taking into account the legislation on procedure of control activities of each of the Parties. Such data are not subject to transfer to other persons (third party).
4. General requirements to ISA of KN, including its structure, and also terms, procedure, forms and formats of submission of information in ISA of KN and receipt of information from ISA of KN, are established by appendix No. 8 to this Agreement or in the procedure determined in it.
Information in ISA of KN is subject to representation concerning the taxpayers of the value added tax staying on the registry in the tax authorities as of January 1, 2023 and also which are again registered since January 1, 2023 and the transactions made by the specified taxpayers since January 1, 2023.
5. In case of identification of the facts of use of one of the Parties of information for the purpose of which are not provided by this Agreement, information transfers to other persons (third party), transfer suspensions fully or partially of information (except as specified, specified in Item 2 of Article 8 of this Agreement) the tax authority of the Party which revealed such violation (violations), having the right to suspend fully or partially information transfer in ISA of KN according to the procedure specified in this Article.
At the same time such tax authority shall send the appeals to tax authority of other Party and to the Supranational Tax Committee containing confirmation of the revealed violations.
By results of consideration of the address the Supranational Tax Committee passes the decision provided by Items 6 and (or) 7 of this Article within 30 days following behind day of receipt of the address.
If the Supranational Tax Committee does not make at the scheduled time the decision, the chairman of the Supranational Tax Committee submits it for consideration of Council of Ministers of the Union State.
6. The tax authority of the Party which elicited the fact of use by other Party of information for the purpose of, not provided by this Agreement, and (or) transfers of information by other Party to other persons (third party) and sent the appeal having the right to suspend information transfer in ISA of KN not earlier than the 3rd working day following behind day of receipt of such address by tax authority of other Party and the Supranational Tax Committee.
Information exchange is resumed:
from the date of, the Supranational Tax Committee specified in the decision on elimination of failure to carry out of the corresponding obligation (the decision of Council of Ministers of the Union State);
from the date of, established according to the mutual written arrangement of tax authorities of the Parties, - in case of settlement according to the mutual arrangement.
Since 3rd day following behind day of receipt of the appeal of tax authority of the Party before removal by the Supranational Tax Committee (decision making of the Union State by Council of Ministers) of the decision on elimination of failure to carry out of the corresponding obligation or before settlement of the Parties of question by tax authorities according to the mutual arrangement the tax authority of other Party also has the right to suspend information transfer in ISA of KN.
7. In case of factual determination of suspension by tax authority of other Party of transfer fully or partially information in ISA of KN (except as specified, specified in Item 2 of Article 8 of this Agreement) the tax authority of the Party has the right to suspend, in turn, information transfer in ISA of KN based on the decision of the Supranational Tax Committee on failure to carry out of other Obligation party by tax authority on submission of information (the decision of Council of Ministers of the Union State).
In this case suspension of submission of information in ISA of KN can be performed by tax authority of the Party to the edition of the decision of the Supranational Tax Committee on elimination of other Party of default on obligation by tax authority on information transfer in ISA of KN or about day of renewal of its representation established according to the mutual written arrangement of tax authorities of the Parties in case of settlement - before decision of the Supranational Tax Committee.
8. Tax authorities of the Parties notify the Supranational Tax Committee on renewal of information exchange.
Information which is not provided by the Parties during suspension for the reasons specified in this Article is subject to representation in ISA of KN in full in the next after renewal of information exchange term.
9. Tax authorities of the Parties in the procedure approved by them at least once a year book audit of timeliness, completeness, reliability of transmitted data and compliance with law of the Parties on information security.
Results of audit are drawn up by the protocol and go to the Supranational Tax Committee.
1. Competent authorities of the Parties notify each other and the Supranational Tax Committee on any changes of the tax legislation which are subject of this agreement concerning the value added tax and excises, and also notify the Supranational Tax Committee on the following provisions of the tax legislation which are subject to application as of January 1 every year:
about the list of excise goods and services with indication of the sizes of rates of excises in them;
about the list of releases, privileges on excises;
about the size the main and the lowered rates of the value added tax;
about all changes (lack of changes) in comparison with January 1 of previous year concerning persons exempted from the value added tax and transactions (turnovers) exempted from the value added tax either liable to the value added tax on the lowered or zero rate.
2. Notifications, stipulated in Item 1 this Article, go till December 31 every year, and in case of introduction of corresponding changes within calendar year - no later than 10 working days from the date of entry into force of such changes.
If necessary competent authorities can approve form of the specified notification.
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