Russian Civic Chamber calls for specifying VAT refund procedure if purchases from foreign online stores refused

MOSCOW. Oct 20 (Interfax) - The Russian Civic Chamber, in its opinion on the draft federal budget for 2027-2029, proposes regulating the procedure for VAT refunds when goods that were purchased from foreign online stores and marketplaces are returned.

It is planned that such goods will be subject to VAT at a rate of 22% from 2027. The opinion on the draft budget was published in parliament's electronic database.

The Civic Chamber assesses the mechanism for introducing VAT at a rate of 22% positively. According to the chamber, it aims to level the playing field and support domestic producers, including protecting against unfair competition from foreign goods on marketplaces. At the same time, the Civic Chamber points to a lack of sufficient certainty in the mechanism for refunding the tax if the purchase and sale agreement is terminated, the goods are returned to the seller, or the money is subject to refund to the consumer. According to the chamber, this uncertainty may lead to additional property costs for the consumer and ambiguity in law enforcement when resolving disputes related to the return of goods.

"It appears expedient, during further refinement of the draft law, to comprehensively work out the procedure for applying VAT upon the return of goods, including the grounds, timelines and mechanism for the refund or offset of the amount paid, as well as to determine the procedure for interaction between the consumer, the foreign seller, the electronic platform operator and the customs authorities," the opinion said.

As reported, amendments to the Tax Code (N617-9) were submitted to the State Duma as part of the budget package; they provide for the introduction from 2027 of VAT at a rate of 22% on e-commerce goods purchased by individuals from third countries. Electronic trading platforms will pay the tax as tax agents. Additional budget revenues, according to the explanatory note to the bill, are estimated at 75 billion rubles per year.