Taxes and legislation

Is B2B.RU legal?

B2B.RU acts in compliance with the Russian laws. The legal base of B2B.RU has undergone an examination by independent auditors. The full text of the auditors’ conclusion may be found here.

As for the legality of barter per se, we will just quote Alexei Kudrin, the Russian Minister of Finance and Deputy Prime Minister: “Barter schemes always exist within the economy. They are legal”. See details here.

How are the relations between the System and its members instrumented?  

Each member and the system (OOO B2B Reestr) concludes a contract comprising elements of information services, agency and commercial representation contracts:
  • B2B undertakes to maintain and operate the information exchange system;
  • B2B undertakes, to the benefit of a member, to find it customers from among other members and to settle barter deals for its goods (works, services);
  • В2В acts as a commercial representative of its members.

The contract between the system and a member also stipulates B2B’s obligation of maintaining the accounting of price assessment of each member’s delivered and received goods (works, services).
To document a transaction for delivery of a ware (results of a work or a service), as well as to coordinate special conditions applied for this transaction (i.e. special requirements to goods-works-services), parties sign an agreement with each other, which is similar to conventional contracts used in general practice.
After signing up with the system, each member gets access to the following documents:

  • Regulations for operating in the B2B.RU open barter system;
  • Contract between the member and the system;
  • Agreement templates required from time to time to document transactions between system members;
  • All reference information concerning accounting of B2B.RU transactions.
How do system members document the deals carried out in the open barter system within their accounting records?  

In accounting records, system members record receivables from B2B in the amount of the supplied goods, works, services, and payables to B2B in the amount of received goods, works, services. Based on the report received from B2B, the members record mutual offset (full or partial) of these receivables and payables. After signing up with the system you will get more detailed instructions and all required consultations concerning the representation of system operations in accounting records.
  
Does open barter provide tax advantages? 

As regards taxation, income from open bartering is similar to monetary income and does not provide any tax advantages. Open barter is an instrument for marketing, not for taxation optimization. Just as in the case of monetary income, purchases made under barter exchange (when they are related with commercial activity) are taxable.
 
How do I know which amount of the open bartering income I should specify in tax return?

In the end of the year, or every month, as you decide, B2B.RU sums up your bartering sales and provides this information to you. 60 days prior to the regulated tax return submission date B2B.RU sends you this document for being accounted in your business documentation.