Section XVII
TAXES AND TAXATION
Article 71
Principles of Cooperation between the Member States in Taxation
All goods imported from the territory of one Member State to the territory of another Member State shall be subject to indirect taxation.
In mutual trade, the Member States shall levy taxes and other fees and charges in such a way to ensure that taxation in the Member State where goods of other Member States are sold is no less favourable than the taxation applied by this Member State under the same circumstances in respect of like products originating from its territory.
The Member States shall determine the directions, forms and procedures for the harmonisation of legislation in respect of taxes affecting their mutual trade so as to prevent violation of any terms of competition and interference with the free movement of goods, works and services at the national level or at the level of the Union, including:
1) harmonisation (convergence) of excise tax rates for the most sensitive excisable goods;
2) further improvement of the system of collection of value added taxes in mutual trade (including the use of information technology).
Article 72
Principles of Indirect Taxation
in the Member States
1. Indirect taxes in mutual trade in goods shall be collected by the country of destination with the application of zero value added tax rate and|or exemption from excise duty on the export of goods and indirect taxation on import.
Collection of indirect taxes and the mechanism for controlling their payment on export and import of goods shall be carried out in the procedure according to Annex 18 to this Treaty.
Indirect taxes on the performance of works and provision of services shall be collected in the Member State the territory of which is recognised as the place of sale of these works and services.
Indirect taxes on the performance of works and provision of services shall be collected in the procedure provided for by Annex 18 to this Treaty.
Tax authorities of the Member States shall exchange all information required to ensure complete payment of indirect taxes in accordance with an international interagency treaty and this treaty shall determine as well the procedure for information exchange, the application form for import of goods and payment of indirect taxes, application filling regulations and requirements to the exchange format.
When importing goods into the territory of one Member State from the territory of another Member State, indirect taxes shall be levied by tax authorities of the Member State to the territory of which goods are imported, unless otherwise determined by the legislation of that Member State with
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regard to goods subject to marking with excise stamps (accounting and control marks and labels).
The rates of indirect taxes in mutual trade in goods imported into the territory of a Member State shall not exceed the rates of indirect taxes imposed on like products sold on the territory of that Member State.
Indirect taxes shall not be levied on import into the territory of a Member State of:
1) goods that are, in accordance with the legislation of that Member State, not subject to taxation (exempt from tax) on import into its territory;
2) goods imported into the territory of a Member State by natural persons, not for the purpose of business activities;
3) goods imported into the territory of one Member State from the territory of another Member State in connection with their transfer within a single juridical person (the legislation of a Member State may require mandatory notification of tax authorities of the import (export) of such goods).
Article 73
Personal Income Taxes
If, in accordance with its legislation and provisions of international treaties, a Member State is entitled to levy the income tax from a tax resident (permanent resident) of another Member State in connection with his|her employment in the first Member State, such income tax shall be levied in the first Member State starting from the first day of employment at the tax rates stipulated for such income of natural persons - tax residents (permanent residents) of the first Member State.
The provisions of this Article shall be applied to all taxable income derived from employment by nationals of the Member States.