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Vehicle Tax in Russia

Many foreigners who own cars in Russia wonder whether they should pay vehicle tax. We will now broach this subject.

When do you become a taxpayer?

Either individuals or business entities have to pay vehicle tax once they register cars with their local department of motor vehicles (known in Russian as Gos Avto Inspektsia).

In practice this means that if you own a car but haven’t registered it with this body, you don’t have to pay vehicle tax.

So, for example, if you are a car dealer and just show your cars to customers without driving them, you do not need to register the cars with Gos Avto Inspektsia. Even though you own the cars, you do not have to pay vehicle tax. To put it simply, vehicle tax is just a tax on license plate so once you get a license plate for a car, you become a vehicle tax payer.

How can I pay vehicle tax?

Individuals do not need to compute taxes or file tax returns because tax authorities compute vehicle tax for them and mail them a bill.

Legal entities, on the other hand, have to calculate their vehicle tax and file a vehicle tax return.

How to calculate vehicle tax?

Calculating vehicle tax can sometimes be tricky because the Russian Tax Code allows regional governments to change some default options. So to calculate this tax properly, it is necessary to refer to Chapter 28 of the Russian Tax Code as well as the appropriate regional tax law as they both specify applicable rates and exemptions.

Vehicle tax is dependent on vehicle type and power.

Please note that vehicle tax is a state tax, so each region in Russia determines their own rates.

For example, if your car has 150 horse powers, then you have to pay 35 rubles per horse power in Moscow.

How can Accountor help?

Accountor Russia’s tax experts can help your company calculate vehicle tax and file vehicle tax return. It is quite complicated to calculate this tax properly as a detailed and professional examination is often required, especially if your company leases a car.