Russian Finance Ministry proposes introducing full VAT for cross-border e-commerce from 2029 while maintaining phased approach - source
MOSCOW. March 10 (Interfax) - A compromise option in the discussion about the timing of introducing VAT on imported goods purchased by individuals through marketplaces could be a transition to full tax payment a year earlier, from 2029, while maintaining a phased increase in 2027-2028.
The Finance Ministry made the proposal after Deputy Prime Minister Alexander Novak in December ordered additional consideration of the issue of introducing VAT for cross-border electronic commerce, taking into account the positions of participants in the Delovaya Rossiya (Business Russia) public organization, a source familiar with the Finance Ministry's response to this order from early February this year told Interfax.
The introduction of VAT on foreign goods sold through marketplaces is intended to equalize trading conditions between traditional retail, which pays value-added tax, and online platforms, as well as to harmonize national e-commerce regulation with the supranational norms regarding electronic commerce at the level of the Eurasian Economic Union (EAEU), which were approved in 2023 and come into force in mid-2026.
In October last year, the Finance Ministry published a draft of amendments to the Russian Tax Code, proposing a phased increase in the VAT rate for goods imported through marketplaces. It would be 5% in 2027, 10% in 2028 and 15% in 2029. Starting from 2030, a transition to the maximum rate (at that time it was 20% and 22% from this year) was proposed.
It is assumed that VAT will be collected regardless of whether the parcel is subject to customs duty or not. Currently, duty-free import of parcels worth up to 200 euros through marketplaces is allowed; above this level, a duty of 15% is paid. From July 1, 2026, the rate will be reduced to 5%, including due to the fact that part of the fiscal burden will be shifted to VAT.
Representatives of offline retail insisted on the accelerated introduction of VAT for e-commerce. The Industry and Trade Ministry said in early February that a transition to tax payment at the full rate could be possible as early as January 1, 2027. It said that this option is being worked out by the ministry as part of the "fine-tuning of the cross-border electronic trade system."
Marketplaces, in particular Ozon , Wildberries and Alibaba , hold the opposite opinion: they insist on the need for an adaptation period during the transition to the full rate. According to the agency's source, their position is supported by the Economic Development Ministry. At the end of last year, Novak instructed the Finance Ministry with the participation of the Economic Development Ministry to bring the opinions of departments and businesses to a common denominator. One of the options became the proposal to shift the transition to full VAT from 2030 to 2029.
The current position of the Industry and Trade Ministry remains unchanged, according to a comment provided to Interfax. The ministry continues to propose introducing a 22% VAT on foreign goods from January 1, 2027. "This position has been sent to the Finance Ministry as part of the development of the corresponding draft law. The main goal of this proposal is to equalize conditions between Russian and foreign sellers (manufacturers). Currently, VAT is not stipulated for such goods, including being refunded upon export in the foreign country, while Russian producers pay it in full," the Industry and Trade Ministry's press service told Interfax.
