Arbitration Fees Have Been Exempted from VAT

The Federal Law № 463-FZ “On Amending the Second Part of Tax Code of the Russian Federation”, dated 28 February 2016, entered into force on 1 January 2017.

The Law provides that the following activities are exempted from VAT:

  • Arbitration of disputes administered by permanent arbitration institutions; and
  • Administration of arbitration by permanent arbitration institutions.

The Law resolves the legal uncertainty in tax legislation and reflects the approach developed in the court practice, according to which the arbitration fees are not subject to VAT.

Thus, arbitration of disputes under the administration of the Arbitration Center as well as the administration of arbitration by the Arbitration Center are officially exempted from VAT.

The Law on Arbitration can be found here (in Russian).