New VAT rules for sales of goods by non-EAEU foreign suppliers via e-commerce platforms

New VAT rules for sales of goods by non-EAEU foreign sellers to Russian consumers

• Who pays the tax?

  Responsibility for calculating and paying tax would rest with tax agents, which fall into 3 categories: 

  • foreign sellers selling goods via their own platforms
  • foreign e-commerce platforms acting as intermediaries for other foreign sellers
  • Russian marketplaces through which goods of foreign entities are sold
• VAT rate

  It is anticipated that the VAT rate would gradually rise:

  • 5% from 2027
  • 10% from 2028
  • 15% from 2029
  • 20%* from 2030

  *It is possible that the VAT rate will be increased to 22% in later versions of the bill.

• Tax period

  Calendar quarter

• Point at which the tax base is determined

  The last day of the tax period in which: 1) a customs declaration for e-commerce products was filed or 2) the tax agent received payment (partial payment) for goods shipped in international mail. 

• How the tax base is determined

  Value of the goods plus the amount of customs duty (if the value exceeds the 200 euro threshold) and the amount of excise duty (in the case of excisable goods).

• Translation of value expressed in foreign currency

  Where the value of goods is expressed in a foreign currency, translation into rubles should take place using the average exchange rate published by the Central Bank of Russia for the tax period that has ended. 

• Tax adjustment where goods are returned

  If an item is returned or rejected by the customer, tax on that item may be credited towards future payments within 3 years of the return date.

• Right of foreign sellers to reclaim input VAT 

  Not provided for.

• Tax filing and payment deadlines for foreign sellers and foreign platforms

  A return must be filed no later than the 25^th of the month following the tax period that has ended via the taxpayer’s online account or by electronic transmission.

  Tax must be paid no later than the 28^th of the month following the tax period that has ended.

• Tax filing and payment deadlines for Russian e-commercial platforms

  Russian e-commerce platforms must file a return and pay tax according to the normal Russian VAT rules. Together with the return Russian e-commerce platforms would be required to provide to the tax authorities a register containing information from customs declarations for e-commerce products pertaining to goods of foreign sellers (hereinafter – “Register”).