Belarus Belarus

Goods

Starting 1 July 2022, foreign entities must be registered in Belarus and pay VAT on the electronic distance sale of goods.

 

This requirement applies to the electronic distance sale of goods or mediating transactions involving buyers in Belarus: individuals and companies.

 

VAT Standard rate

The standard VAT rate in Belarus in 2023 is 20%.

 

VAT Reduced rate

10% – for some types of food, children’s goods, and medicines.

 

Thresholds

The distance selling threshold is €10,000.

 

Who is obliged to register for VAT in Belarus

The foreign company is obligated to register for VAT upon the occurrence of two conditions jointly:

  • The company sells goods to individual buyers of Belarus;
  • The annual revenue from the sale of goods to individual customers in Belarus exceeded €10,000 per year.

The exemption is when the goods are sold through a trading platform that is registered on the territory of the Republic of Belarus and remits VAT on the goods sold.

 

Registration procedure

The taxable person must register with the Ministry of Taxes and Dues of the Republic of Belarus. The procedure is electronic and free.

The owners will be required to complete and submit a VAT registration form, along with supporting documentation:

  • Trade register extract;
  • If the company appoints a local tax agent or Fiscal Representative, then a Letter of Authority or Power of Attorney.

 

Marketplaces

Effective July 1, 2022, Marketplace facilitators located outside of Belarus must register for VAT in Belarus when they have revenue from Belarus of more than €10,000 yearly. In such a case, Marketplace is obliged to calculate and remit all sales tax for sales via this marketplace.

 

Tax representative

There is no requirement to appoint a tax representative in Belarus.

 

Deductible VAT

When remote sellers registered for the simplified scheme for reporting VAT on sales to Individuals such sellers cannot credit incoming VAT.

 

Keeping records

Currently, the Tax Code of the Republic of Belarus has not set out a form of keeping records. Accounting is conducted in an arbitrary form, but it has to be provided with the following information:

  • Information used to determine the location of the entity or an individual: full name, address, network address, tax identification number, domain name, international phone code, postal code of residence, bank information, and more;
  • Information to determine the taxation base: the cost of services provided, the currency of payment, the date of the provision of service, and the number of payments received (including advance payments). In case of return (offset) of funds – the amount and date of the return (set-off).

 

VAT payment date

The VAT payment must be submitted by the 22nd of the month following the reporting quarter.

 

Filing VAT returns

A taxpayer must transmit tax returns to the Ministry of Taxes and Dues of the Republic of Belarus by electronic means.

The LOVAT platform supports digital submission.

The reporting periods are as follows: April (Q1), July (Q2), October (Q3), and January (Q4).

The first fiscal period was Q3 2022.

The date for filing tax returns is no later than the 20th of the month following the reporting quarter.

Digital services

Effective since 1 January 2018.  

According to the Tax Code of the Republic of Belorussia, digital services provided by foreign companies are subject to Belorussian VAT at the location of the customer.

 

VAT Standard rate

The standard VAT rate in Belarus in 2023 is 20%.

 

VAT Reduced rate

There is no reduced rate established.

 

VAT calculation peculiarity

VAT= Total revenue * 20/120.

 

Pieces of evidence

To identify customer location merchant has to collect at least 3 pieces of evidence. And if one of them is Belarus, the customer may be determined as Belarusian: 

  • Customer’s address;
  • Billing address (bank or electronic payment operator);
  • IP address;
  • Telephone number.

 

E-services list

  • Granting the right to use software (including computer games) and databases including updates and additional functional options through the Internet as well as provision of remote access to them, also electronic books (publishing) and other electronic publications, information, educational materials, graphic images, music with or without text, audiovisual through the Internet, including by providing remote access to them for viewing and/or listening through the Internet;
  • Advertising services provided through the Internet, including services provided with the use of software and databases that function on the Internet, as well as provision of advertising space on the Internet;
  • Services for displaying offers for the acquisition (disposal) of goods (works and services) or proprietary rights on the Internet;
  • Services provided automatically over the Internet upon the insertion of information by the user, automated services for on-demand data search, selection and sorting, and provision of data to the user through information and telecommunications networks (including real-time stock exchange data provision and real-time automated translation services);
  • Services involving searching for and/or provision of information on, potential buyers for a client;
  • Provision of technical, organizational, informational, and other possibilities with the use of information technologies and systems through the Internet for setting up contacts between sellers and buyers and conclusion of contracts (including real-time trading platforms on the Internet where potential buyers may offer prices using an automated procedure and the parties to the contract are informed of a sale by messages that are created and sent automatically);
  • Provision and support of a commercial or personal presence on the Internet, support of users’ electronic resources (websites and (or) pages on the Internet), provision of access to them by other Internet users, and provision of options to modify them, provision of services for the administration of information systems;
  • Storage and processing of information if the person that submitted the information has Internet access to it;
  • Provision of computing capacity in real time for including information in information systems;
  • Provision of domain names and hosting services;
  • Provision of access to search systems on the Internet;
  • Provision of statistical services on Internet websites.

 

Registration procedure

The application for registration has to be submitted before the last day of the quarter in which the object of VAT taxation has arisen.

So a foreign organization that provides electronic services to customers in the Republic of Belarus in the first quarter of 2018 is required to file an application for registration, no later than March 31, 2018.

The application can be submitted in one of the following ways:

  • Hard copy;
  • Electronic form.

 

VAT returns filling date

The VAT return must be submitted no later than the 20th of the month following a reporting quarter.

 

VAT payment date 

The VAT amount in BYN must be paid by the 22nd day of the month, following the reporting quarter.

 

Keeping records

Currently, the Tax Code of the Republic of Belorussia has not set out a form of keeping records. Accounting is conducted in an arbitrary form, but it has to be provided with the following information:

  • Information used to determine the location of an individual: full name (if it was provided by an individual) network address, domain name, international phone code, postal code of residence, bank identification code used by the individual for receiving digital services, and more;
  • Information to determine the taxation base: the cost of services provided, the currency of payment, the date of the provision of service, and the number of payments received (including advance payments). In case of return (offset) of funds – the amount and date of the return (set-off).