VATLive > Blog > Russian Federation > Russia zero-rate ecommerce VAT for resident sellers

Russia zero-rate ecommerce VAT for resident sellers

  • Nov 4, 2020 | Richard Asquith

The Russian Parliament has proposed to zero-rate the sales of goods by Russian resident sellers to combat what is sees as unfair tax competition from abroad.

Non-resident sellers to Russian consumers do not VAT register to declare the sale and pay Russian VAT. Instead, the consumer is responsible for import VAT and customs duties. This may provide some tax price advantages to foreign sellers, harming Russian online merchants and traditional retail stores.

For foreign companies making taxable supplies in Russia, there may be a statutory obligation to register as a taxpayer.

There is no separate registration for VAT purposes in Russia, however the general registration as a taxpayer covers VAT. Once registered traders must comply with local filing rules.


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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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