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Tuesday, October 16, 2018


We refer to our P&T 3/99 regarding VAT exemption for agency services to foreign flag vessels in Russian ports.  Russian taxation authorities in Novorossiysk require agencies rendering this service to have a signed and stamped bill from the master.

This bill is provided by the agent and contains agency expenses only.  In case an agency fails to produce such a bill to the taxation authority, 20% VAT will be levied on the agency fees.

As masters usually do not approve final disbursement account, agents advise the masters to sign and stamp this bill with the following remark: “Final D/A for owner’s approval”.

Source: JSC “LUKOIL” Chernomorye” Maritime Shipping Agency, Novorossiysk