SteelOrbis has heard that Russian government will reimpose 18 percent VAT on scrap as of January 1, 2018. The VAT on scrap in Russia was abolished in 2008. The VAT will also apply to export sales and will be paid by the seller.
Local Russian sources interviewed by SteelOrbis stated that, with the new rules, inspections regarding VAT refunds will be stricter and will take more time, so that tax payers will likely have to wait up to six months to obtain a VAT refund. Market participants are still struggling to figure out the details of how the new system will work.
