The Russian government has approved a mechanism for collecting VAT on sales of goods through electronic commerce platforms within the framework of the Eurasian Economic Union. This was reported by “Hit the primer” Citing cabinet documents.
The publication stated that the relevant draft law will be submitted to the State Duma.
In early October 2022, EAEU countries agreed to avoid double taxation on online trade. Tax will now be collected in the buyer’s country, not the seller’s country, as before. For example, if an online store in Kazakhstan sells products to a buyer in Russia, VAT will be applied to the Russian budget.
This will simplify procedures and eliminate double taxation in cross-border online trade within the EAEU. The innovation will affect Russian online stores operating in the markets of other countries of the Union.
Additionally, the Council of Ministers approved measures that will reduce reporting by small businesses and simplify the supply of domestic products. This will reduce the administrative burden on entrepreneurs.
Before that Russia Established Trade records with friendly countries.
Previously the Council of Ministers elongated Ban on the export of certain goods from the Russian Federation.