Russian car exporters will be exempt from VAT and customs tax

As a result of the amendments to the TAX Code in November, Russian car exporters are entitled to new benefits, as told by a source form the market to Kommersant, a statement confirmed by the Russian Export Centre (REC). Previously, the manufacturers had to choose in between: nullification of VAT and excise duties during exports or exemption from customs duties and taxes on the imports of components for export. Now the exporters are entitled to both benefits. As told by the head of REC: Petr Fradkov to Kommersant, the manufacturers have applied to the Centre for a change in the rules and the updated mechanism will act as a serious contributor to the development of exports.

According to REC data, automobile exports have risen by 26% during the January-September period, to 75,000 vehicles. The largest growth was experienced in the car segment and the biggest part of the vehicles were exported to the CIS countries (59%) and Eastern Europe (29%). In the meantime, deliveries have been made to Gulf countries for the first time in 15 years (Renault has supplied more than 2600 Russian assembly Duster vehicles to the region). AVTOVAZ exports have grown by 61.6% by the end of three quarters to 18,200 units and Sollers aims to increase exports by 5% this year, to 7000 automobiles. KAMAZ exports have shrunk by 8% during the aforementioned period to 3050 trucks (the company’s annual export plan is 5600 units).

Car manufacturers will receive 2 billion rubles as a support for transportation (during exports), around 1.5 billion rubles for certification and homologation and 128 million rubles for exhibition activities by the end of the year, according to REC data. Government support for exports amunted to 2.1 billion rubles in 2016. As stated by Petr Fradkov in September, subsidies are planned for the creation of service stations abroad in 2018.

Source: RusAutoNews.Com