Russia’s Finance Ministry has suggested charging from 2018 or 2019 value-added tax (VAT) on goods purchased in foreign online stores, according to a draft tax policy document.
“Keeping in mind experience of charging VAT on content sold in Russia by foreign online floors, amendments to the law on taxes and duties will be proposed from 2018-2019 to collect VAT on goods sold by foreign suppliers to Russian individuals via Internet floors”, the document read.
The ministry also offered to cancel VAT on goods purchased by foreigners in the country to raise turnover of domestic retailers.
Goods will carry no VAT if they are exported outside the Eurasian Economic Union, which comprises Russia and some other countries of the post-Soviet space. (Prime/Business World Magazine)