Value Added Tax

The main tax rate is 18%. There exists a reduced rate – 10%, according to the list specified by the Decree of the President of the Republic of Belarus (foodstuffs; children’s goods; products of plant growing, cattle breeding, fish-breeding, beekeeping). For export of goods – 0%.

The object of taxation shall be deemed turnover of sales of any goods (work, services) or of proprietary rights to any intellectual property objects in the territory of the Republic of Belarus (including turnover of free transfer of such objects); or turnover of sales of any goods (work, services) or of proprietary rights to any intellectual property objects transferred from the territory of the Republic of Belarus, or to the goods brought in the customs territory of the Republic of Belarus.

NOTE. Should any goods (work, services), proprietary rights to any intellectual property objects be sold in the territory of the Republic of Belarus by any foreign organizations not registered in the tax bodies of the Republic of Belarus, the duty to calculate the tax and transfer it to the budget shall be vested in the organizations and individual entrepreneurs which are registered in the tax bodies of the Republic of Belarus and purchase such goods (work, services), proprietary rights to any intellectual property objects.

• Tax Code of the Republic of Belarus of December 19, 2002 (General Part);
• Law of the Republic of Belarus No. 1319-XII dated December 19,1991 “On Value Added Tax”;
• Decree of the President of the Republic of Belarus No. 1 dated January 13, 2005 “On Certain Issues of Value Added Tax Calculation and Payment, and Declaration of Certain Decrees and Provisions of the Decree of the Republic of Belarus Null and Void”.

Excises

Excise rates shall be fixed in absolute sums per physical unit of the goods subject to excise (fixed (specific) rates) or in per cent of the value of such goods (ad valorem rates). Excise rates shall be fixed by the President of the Republic of Belarus. Excise shall be payable from:

• manufactured goods which are subject to excise;
• the goods imported to the customs territory of the Republic of Belarus;
• for sale of the goods which are subject to excises and are imported to the customs territory of the Republic of Belarus.

The following goods (products) shall be subject to excises:

• hydrolytic industrial spirit; spirit-based solutions except for solutions with denatured additions; spirit-based medical, medical-preventive, diagnostic remedies and medications allowed for manufacture and/or use in the territory of the Republic of Belarus in accordance with the procedure established by the legislation; spirit-based remedies manufactured by drugstores according to individual prescriptions, including homeopathic remedies; spirit-based remedies and medications for veterinary allowed for manufacture and/or use in the territory of the Republic of Belarus in accordance with the procedure established by the legislation; spirit-based perfumes and makeup;
• alcoholic products (excluding cognac alcohol and wine-making raw stuff);
• beer;
• tobacco goods;
• motor spirit; diesel oil; other fuel used as motor spirit; oil for diesel and/or carburetor (injector) - engines;
• jewelry;
• microbuses and passenger cars, including those rebuild into lorries regardless of their useful engine capacity, excluding passenger cars designed for prophylaxis and rehabilitation of disabled people.

The list of the goods which are subject to excises may be adjusted by the President of the Republic of Belarus.

• Law of the Republic of Belarus No. 1321-XII dated December 19, 1991 “On Excises”;
• Decree of the President of the Republic of Belarus No. 28 dated January 13, 2006 “On Excise Rates”.

Duty to the Republican Fund for Support of Manufacturers if Agricultural Products, Foodstuffs, and Agrarian Science

Tax to Road Funds from the Motor Road Users

All duties shall be paid in a block payment in the amount of 3.0% of proceeds from sales of goods (work, services) (or from income less cost of payment of interest, commission fee and other banking costs – by the banks and non-banking financial institutions, except for the National Bank of the Republic of Belarus; or from gross revenue – by the organizations involved in commercial, procurement activities and rendering services in catering; or from balance sheet profit – by insurance companies).

• Article 9 of Law of the Republic of Belarus No. 81–З dated December 31, 2006 “On the Budget of the Republic of Belarus for Year 2006”