VAT Guide for Freelancers in Belarus

Regardless of where you work from, if you have clients in Belarus you have to deal with Belarus’s VAT rules. VAT, or Value Added Tax, is a consumption tax levied on the purchase of almost all goods and services. While you might already know what VAT stands for, you might be unaware of the specific rules surrounding your product. 

 

If you are a freelancer in Belarus and are confused by VAT and its pertaining rules, you're at the right place. We at Xolo are here to answer all your VAT-related queries. In addition, we also offer A-to-Z VAT-related services designed as per your individual needs and requirements.

 

What are the VAT Rates in Belarus?

The Belarus government levies four different VAT rates, and freelancers must charge the amount that applies to their products and services:

 

  • Standard VAT rate of 20%  – applied to the supply of almost all goods and services.
  • Reduced VAT rate of 10% – applied on certain goods and services such as the sale of store cattle (animal fat, beef, pork, etc.), crops, fish and hive products, animals farmed for fur, food products, and goods for children. 
  • Increased VAT rate of 25% – applied on the sale of telecommunication services such as data telematics and transmission, phone services, and TV broadcasting.
  • Zero-rate – 0% VAT is applicable on different types of exports and aeroplanes and railway repairs carried out for foreign individuals and companies. Although there are no charges on zero-rated products, you should record sales of goods and services and create a report based on your returns.

 

How to Register for VAT in Belarus

Belarus does not have a VAT registration threshold, which means that even if you make a single sale in the country, you need to register for Belarusian VAT. You can register online by double-checking your eligibility and following the instructions on the Belarusian Ministry of Tax and Duties website. Post-registration, you will receive a nine-digit Tax Identification Number (TIN), which puts you in the Belarus tax system and tracks your services, the taxes you pay, the tax credits you receive, and the tax you charge from customers.

Alternatively, you can hire an accountant (or agency) to handle your VAT returns and dealings with the Belarusian Ministry of Tax. Xolo provides services like Xolo Go and Xolo Leap, which help with precisely this and any other VAT concerns you may have.

VAT for Expat Freelancers in Belarus

As an expat working freelance in Belarus, you are required to submit a standard tax application for registration, just like a Belarus resident would. 

If you do not have a permanent establishment in Belarus, you are not liable to pay VAT for the goods or services you supply. However, in this case, your clients are obliged to pay the required VAT for the goods or services they receive from you.

Financial Obligations of VAT Registered Freelancers in Belarus

After registering for VAT, you must make sure of the following things:

  • Issue an electronic VAT Invoice, via the web portal of the Ministry of Tax and Duties of the Republic of Belarus, for each of your VAT-taxable transactions.
    • Ensure you do so before the 10th of the month following the month you supplied your goods and services.
  • File your VAT returns either on a monthly or quarterly basis. The option you choose has to continue for at least the current tax period.
  • Calculate VAT at the end of every reporting period. Additionally, you have to ensure the VAT payment before the 22nd of the month that follows the reporting period.
  • The VAT returns are required to be filed with the help of an electronic document having your digital signature.
  • You can create and file an electronic document to the Belarusian tax authorities in one of the following ways:
    • Via your personal account on the web portal
    • By inputting an XML file on the web portal, and
    • Via the specialized software of the Ministry of Tax and Duties of the Republic of Belarus.

 

Overwhelmed? Xolo’s got your back! We automatically generate, send, and store all your invoices for you, so you won’t have to worry about missing any steps or misplacing any documents.

How Xolo Can Help

Learning all the Belarus tax guidelines can be challenging, especially if you’re a sole proprietor and in charge of several aspects of your business. Luckily, at Xolo, we offer a range of solutions that can handle all the paperwork and legal jargon, allowing you to focus on your core competencies.

  • Xolo Go is a quick and efficient way for freelancers who may or may not have a registered LLC or sole proprietorship to invoice clients legally. 
  • Signing up takes only 10 minutes, and once you do, taxation, corporate compliance, and all the tricky VAT calculations are all automatically taken care of in the background!
  • We charge a flat rate of 5% from every withdrawal to your personal bank account. No surprise fees, no contracts, and no BS.
  • Xolo Leap allows you to start your own company with us through Estonian e-Residency!
  • We offer different tiers of service depending on the solopreneur's (or as we call them, Xolopreneur's) individual needs.
  • Once you get your business set up with Xolo Leap, you can literally run it from anywhere in the world! So whether you’re a freelancer looking to gain access to the EU market or a digital nomad who can’t be tied down - this is the place for you! 

 

So connect with us immediately, and we’ll help you get your one-person business up and running in Belarus in no time!