State Duma committee backs introducing VAT for imported goods on online marketplaces
MOSCOW. Feb 16 (Interfax) - The Russian State Duma Industry and Trade Committee has backed the idea of introducing VAT for imported products sold via digital platforms, regardless of whether or not there is a duty-free threshold, and has said that trading terms for Russian and foreign sellers on online marketplaces should be made equal.
The State Duma's draft recommendations, prepared by the committee following the parliamentary hearings on developing light industry in Russia, have been posted on the electronic parliament database. A section of the document is dedicated specifically to refining regulations on intermediary digital platforms. It proposes, among other things, that the government discuss the question of introducing VAT for imported products sold on intermediary digital platforms, even where there is a duty-free threshold. At the moment, customs duties and taxes do not apply to goods for personal use costing up to 200 euros and weighing up to 31 kilograms which are delivered by a removal service or via international mail into the Eurasian Economic Union (EAEU) customs territory, in accordance with Appendix N1 to Eurasian Economic Commission (EEC) Resolution N107 dated December 20, 2017.
The Industry and Trade Ministry has previously advocated for introducing a full VAT rate of 22% for foreign goods purchased on marketplaces from January 1, 2027 onwards, as Industry and Trade Minister Anton Alikhanov said at a meeting of the State Duma Industrial Policy Committee last week. This proposal differs from the Finance Ministry's draft regulation, which involves raising the rate in increments from 5% in 2027 to 10% in 2028, 15% in 2029 and 20% from 2030 onwards. Alikhanov said that the Industry and Trade Ministry was also making further adjustments to a system for cross-border e-commerce and leveling out commissions on marketplaces.
The State Duma committee similarly proposed in the draft parliamentary decree that the government eliminate gaps in the rules on cross-border trade where goods are sold directly from foreign sellers to Russian buyers. This refers to the situation when an item sent directly via mail from a foreign seller is subject to a different tax and regulatory regime than an item which is imported by an importer and sold within the country.
Other measures include setting preferential terms for Russian suppliers when paying commissions to marketplaces and providing the marketplace operators with tools with which to oversee that intellectual property rights are being upheld through integration with the informational resources of the Federal Service for Intellectual Property (Rospatent).
Besides regulating the marketplace platforms, it was also proposed that the validity of conformity assessment documents be terminated on Russian territory if they were issued by certification bodies of EAEU member states which have committed three or more violations within one year.
The recommendations contain a series of measures to support and protect Russian producers, proposing that the government discuss increasing the unified equipment lease subsidy from the current 650 million rubles to 1.5 billion rubles per year, as well as expanding the list of light industry goods in the Chestny Znak (Honesty Mark) labeling system to include bags, suitcases and leather components for making footwear.
There is also a separate list of recommendations on supplying the industry with raw materials. The Industry and Trade Ministry and the Agriculture Ministry are advised to work together on organizing wool trading on the exchange in order to form an indicative price and establish consolidated procurement.
