Business in Russia: accounting – doing it the right way

In Russia an ordinary invoice is merely considered an invitation to pay and is sufficient neither for accounting nor for taxation.  Every invoice must be accompanied by two more documents: the formal invoice and the so-called file.

The formal invoice separately quotes the VAT-amount which is included in the total invoiced amount. Without this document the VAT paid before cannot be claimed as input tax. Furthermore a so-called file is required for correctly entering a settled invoice as expenditure. In this record of delivery the contracting parties assure each other that a service has been duly rendered and no complaints have been left unsettled.

In the original invoice, formal invoice and file must always be presented bearing signature and the blue firm stamp. Only then costs can be accepted as expenditure and the VAT-tax paid before can be claimed as input tax. In any case it is highly recommended to place these agenda in experienced hands – either assign them to an experienced accountant or a professional provider of services.