Foreclosure and VAT. The RF Supreme Arbitrazh Court repealed provisions of the Russian Tax Code
10.04.2013, Valentin N. Moiseev
Tax law provisions requiring that purchasers of foreclosed property of legal entity debtors must pay VAT on the purchase price are inconsistent with the mechanism for settlements with creditors as set by the bankruptcy law. By its Resolution of January 25, 2013, No. 11, “On Payment of the Value Added Tax on Foreclosed Property of a Debtor Declared Bankrupt, the Plenum of the RF Supreme Arbitrazh Court has resolved this inconsistency in favor of debtor’s tax agents and creditors. The arguments set forth in the Resolution and its legal effect are discussed by Attorney-at-Law Valentin Moiseev.