OREANDA-NEWS  On 25 September was announced, that Belarus’ President Alexander Lukashenko specified computation of excises and the value-added tax for exports of commodities originating in third states to Russia. The president signed relevant ordinance #515 dated September 16, 2008, the press service of the head of state reported.

The provision on application of the zero-rated VAT on exported work/services and commodities originating in third countries sold in Russia has been supplemented by a procedure introducing full tax deductions for commodities, work and services subject to the zero-rated VAT rate.

The zero-rated value-added tax applies to work/services enumerated in the intergovernmental protocol dated March 23, 2007: work/services to produce commodities and repair, upgrade and re-equip vehicles and components of vehicles.

The president has extended the list of documents to be submitted to tax agencies to justify the application of the zero-rated VAT rate.

Third-country commodity sales turnover in Russia will be subject to the zero-rated VAT rate in accordance with Belarus’ regulations.

Specialists believe these measures will encourage domestic exporters to increase supplies of goods from third countries to Russia, including processed commodities [semi-knocked-down assembly].