Russia Imposes VAT on Mining Equipment Rentals to Overseas Firms

The Russian Ministry of Finance has proposed a value-added tax (VAT) on businesses renting out mining equipment or data centers to foreign entities, aiming to clarify the taxation process for leasing. This new regulation will also apply to energy companies supplying electricity to these firms. The ministry aims to establish clearer tax rules for companies providing ‘mining power’ services to non-Russian clients. VAT may be levied on rental bills at various frequencies, addressing existing uncertainties and simplifying business filings.