Russia. Position of the Federal Tax Service regarding VAT treatment of medical devices

According to the Letter # GD-4-3/6155 issued by the Federal Tax Service of Russia on 04.04.2014, the sale of medical devices is VAT-exempt provided that a valid registration certificate is submitted to the tax authorities.

Until 1 January 2014, in accordance the sale of essential and vital medical equipment of domestic and foreign manufacture was VAT-exempt if such equipment was included in the list approved by the Government of the Russian Federation (Tax Code of Russia, Article 149, clause 2, sub-clause 1).

Effective 1 January 2014, the amendments introduced to the said provision of the Tax Code aligned its wording with the legislation on the basics of public healthcare in Russian.

Furthermore, the VAT exemption shall apply both before and after 1 January 2014 to the sale of medical devices provided that the corresponding registration certificates have been duly issued, e.g. if they indicate the codes of the All-Russian Classifier of the Products stipulated by the list approved by Resolution No. 19 of the Government of the Russian Federation dated 17 January 2002.

Source: KPMG-Russia