FBK Legal News

Vedomosti report that State Duma passed in the second seating draft legislation designating a range of developers who have right to attract funds of citizens for shared construction. According to the publication now every transaction with accomodation, associated with attracting citizen’s funds and emerging property titles, must be concluded in compliance with the Federal Law #214 “On Shared Participation in Construction…”.

Developer’s services will be VAT exempt. In materials to amendments its is mentioned that this will eliminate reasons for using alternative contracts. “Amendments will allow developers save on VAT, but only from margin — the price of materials and services to suppliers will still include VAT”, Head of FBK-Legal Tax Litigation Practice, Galina Akchurina.