MOSCOW, September 20 (RAPSI) – A bill on exemption from value added tax (VAT) for the transfer of tangible assets from the Federal Agency for State Reserves (Rosreserv) has reached the State Duma, according to the database of the lower house of Russia’s parliament.

The bill introduces amendments to tax legislation by taking into account court practice regarding storage and sale of tangible assets. Authors of the bill propose to exempt transfer of tangible assets to responsible custodians and borrowers from VAT if these transactions are concerned with refreshment and replacement operations as well as borrowing.

The Supreme Commercial Court ruled in 2012 that territorial bodies of Rosreserv must compensate the custodians of tangible assets from the state reserve with VAT payments. Later, Russia’s Supreme Court ruled that these custodians should not pay VAT at all.