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Russian Value Added Tax (VAT) | Frequently Asked Questions

Last updated: April 28, 2021

Please note: this article has been prepared for informational purposes only. It is not intended to provide, and should not be relied on as tax advice. For any questions you should consult your own tax and/or legal advisors.

If your business is located in Russia, learn how HubSpot handles Value Added Tax (VAT) and how you can update HubSpot with your VAT-related information.

VAT is generally due when goods and/or services are sold and supplied. VAT applies to most goods and services that are bought and sold for use or consumption in Russia. Generally, VAT is invoiced by the supplier of goods or services, then collected from the customer. The supplier then reports and remits the collected VAT to the tax authorities.

The Government of the Russian Federation has changed the VAT rules for digital services provided by foreign suppliers like HubSpot. Foreign suppliers that are required to register for VAT must collect the relevant tax on sales of digital services to all customers in the Russian Federation.

As of, May 1, 2021 HubSpot charges VAT to customers whose primary company address is in the Russian Federation. Learn how to check what your primary company address is set to in HubSpot

Below are frequently asked questions related to VAT for customers in Russia.

Which HubSpot services are liable for VAT?

Subscription services are considered an e-service for VAT purposes in Russia, and have a rate of 16.67% of the gross amount. This includes all of HubSpot’s tools and services. While not considered an e-service, customer support is subject to VAT as a consulting service because the place of supply is Russia.

Who is liable to pay VAT?

All HubSpot customers with a shipping address in the Russian Federation are subject to VAT in Russia.

How do I update HubSpot with my VAT information?

Reach out to billing@hubspot.com with the following details:

  1. A confirmation of whether you have paid VAT acting as a tax agent (on behalf of the foreign supplier, HubSpot) on any HubSpot invoices. If you've paid VAT on any HubSpot invoices, HubSpot may request the related VAT returns and payment order for support.
  2. Your Taxpayer Personal Identification Number (INN).

Is there a minimum purchase amount before VAT is applied?

No. All supplies of electronic services, hosting and consulting services to customers in Russia (both business and individuals) are subject to Russian VAT.

Does HubSpot provide VAT exempt or non-VAT taxable services?

No. All services currently provided by HubSpot to customers 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 HubSpot supplies to charities in Russia.

Will VAT apply even if a Russian company provides a valid Taxpayer Personal Identification number to HubSpot?

Yes. VAT applies to all the services that HubSpot supplies to customers in Russia.

Are there any VAT obligations for me as a customer?

No. If you are registered for VAT in Russia and you want to claim an input tax credit for the VAT paid to HubSpot, as a minimum you should ensure to keep a copy of HubSpot’s invoice for your records.

For any further questions on claiming an input tax credit, please speak to your tax advisor.