The VAT treatment of materials printed and delivered in Russia depends on the country of the billing address of the customer. When a local Russian customer places an order for print products on the Gelato website, it enters into a service contract with Gelato Russia. The local Russian customer will receive an invoice from Gelato Russia. In this case, Gelato is legally obligated to pay VAT on customer transactions in Russia. For domestic sales from Gelato Russia to local customer, 18% VAT will be added.
If the customer billing entity is outside Russia and would like to pay for printed materials delivered in Russia, Gelato AS will bill the customer for the printed material. Because Gelato AS is not registered in Russia for TAX purposes, no Russian VAT will bill included in the invoice from Gelato AS to the non-Russian customer.