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Belarus Clarifies VAT Exemption for Imported Goods for International Technical Assistance Projects — Orbitax Tax News & Alerts

Guidance Letter 2-1-10/1338, recently made public by the Belarusian Ministry of Taxes, clarifies the exemption from VAT, excise taxes and customs duties provided for goods imported for use in an international technical assistance. Key aspects of the guidance include:

  • The exemption only applies for legal entities and individuals that have entered into a contract directly with the recipient of the technical assistance
  • Operations related to the technical assistance project involving the supply or transfer of goods in Belarus and works or services, as well as subsequent transfers of goods, works, or services are also exempt from VAT
  • Construction companies and individual entrepreneurs that have entered into a construction contract directly with the beneficiary of technical assistance may apply the VAT exemption to their construction activities related to the project - subcontractors, however, may not
  • The VAT exemption does not apply to transfers of property rights in connection with the implementation of an international technical assistance project, or any subsequent transfer of property rights related to the project