Subject The article examines the point of sale of goods (POS) in sale–purchase of imported goods undergoing the customs warehousing procedure. Objectives The study specifies the POS as a concept in the context of the customs warehousing procedure and makes suggestions on amending legislative regulations. Methods Research involves regulatory approaches, general scientific and special methods, such as a systems analysis, observation, and tool-based techniques of grouping, sampling, comparison and generalization. Results As set forth in Article 147 of the Russian Tax Code, the contractual model implies no VAT, since customs warehouse is not qualified as the point of sale for purposes of Chapter 21 of the Russian Tax Code. I analyzed views of the Russian Ministry of Finance denying the emergence of a taxable item in Russia and, correspondingly, other tax implications from the sale of goods undergoing the customs warehousing procedure or stored there. The Russian Ministry of Finance expresses such views referring to the Russian Tax Code, which stipulates that the sale of goods in Russia is subject to VAT. I believe that, when goods are sold during customs warehousing, VAT shall be payable upon each subsequent sale, since Russia can be qualified as the POS. Conclusions and Relevance To implement my concept, provisions of Article 147 of the Russian Tax Code should be specified so as to avoid that Russia be not recognized as the POS of goods when goods are actually sold during the customs warehousing procedure in Russia-based facilities.
Sidorova E.Yu. [Improvement the methods of tax regulation mechanism effectiveness assessment in the Russian Federation]. EКОНОМIЧНИЙ ЧАСОПИС-XXI = Economic Annals – XXI, 2015, no. 11-12.
Artem'ev A.A. [Imports from the Special Economic Zone: Methodological issues of indirect taxation]. Nalogoved, 2018, no. 10, pp. 42–53. (In Russ.)
Artem'ev A.A., Pinskaya M.R. [Methodological issues of indirect taxation on intermediary transactions in the EEU and solutions]. Natsional'naya bezopasnost' / Nota Bene = National Security / Nota Bene, 2018, no. 6, pp. 12–18. (In Russ.) URL: Link
Artem'ev A.A., Pinskaya M.R. [Methodological issues of charging VAT on transactions with imported goods in the EEU]. Nalogovaya politika i praktika = Tax Policy and Practice, 2016, no. 10, pp. 64–68. (In Russ.)
Artem'ev A.A., Pinskaya M.R. [Weaknesses of the indirect taxation mechanism in the EEU and methods to eliminate them]. Mezhdunarodnye otnosheniya = International Relations, 2018, no. 4, pp. 104–111. URL: Link
Artem'ev A.A., Pinskaya M.R. [Issues of assessing tax implications of importing project and design documentation into the EEU customs zone]. Nalogoved, 2018, no. 11, pp. 44–59. (In Russ.)
Artem'ev A.A., Sidorova E.Yu. [The mechanism of using the materials of the world customs organizations based on the methods of the OECD on the rights of the Union and the Russian Federation]. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions, 2017, no. 9, vol. 4, pp. 28–34. (In Russ.)
Goncharenko L.I., Vishnevskaya N.G. [VAT recovery: Is the mechanism fair?]. Nalogovaya politika i praktika = Tax Policy and Practice, 2017, no. 8, pp. 68–41. (In Russ.)
Goncharenko L.I., Malkov Yu.V., Advokatova A.S. [Current issues of the tax system in the digital economy]. Ekonomika. Nalogi. Pravo = Economics, Taxes & Law, 2018, vol. 11, no. 2, pp. 166–172. URL: Link (In Russ.)
Sidorova E.Yu. [The use of models for minimizing the customs value of imported goods within the framework of related-party transactions]. Ekonomika. Nalogi. Pravo = Economics, Taxes & Law, 2017, no. 5, pp. 142–147. URL: Link (In Russ.)
Sidorova E.Yu., Nazarova N.A. [Investigation of verification issues of the customs value of goods in conducting transactions between interrelated persons (on the example of the Russian Federation and foreign countries)]. Vestnik BIST, 2017, no. 4, pp. 7–13. (In Russ.)
Sidorova E.Yu., Nazarova N.A. [Comparative analysis of the customs value adjustment mechanism in transactions between affiliates (in the context of the Russian Federation and other countries)]. Vestnik professional'nykh bukhgalterov = Institute for Professional Accountants, 2017, no. 5, pp. 42–48. (In Russ.)
Sidorova E.Yu., Tikhonova A.V. Assessment of the fiscal effect of the tax reform options until 2019: The case of Russia. EКОНОМIЧНИЙ ЧАСОПИС-XXI = Economic Annals – XXI, 2017, no. 3-4, pp. 45–48. (In Russ.) URL: Link
Ustoichivoe razvitie nalogovoi sistemy Rossiiskoi Federatsii v usloviyakh global'nykh izmenenii (monografiya) [Sustainable development of the tax system of the Russian Federation during global changes: a monograph]. Moscow, Dashkov i Ko Publ., 2017, 582 p.