Russia zero-rate ecommerce VAT for resident sellers

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.