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Russia Introducing VAT Destination Principle for Online Distance Sales of Goods in the EAEU

24 May 2023

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Proposed Changes

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Russia-Armenia-Belarus-Kazakhstan-Kyrgyzstan

Russia's Ministry of Finance has proposed a draft law that amends the Tax Code to eliminate double VAT on online distance sales of goods through electronic trading platforms within the Eurasian Economic Union (EAEU). The draft law was proposed considering changes in the taxation of online sales of goods to individual customers in other EAUE countries, such as Kazakhstan and Belarus, which have required VAT on online distance sales of goods from other countries since 1 January 2022 and 1 July 2022, respectively. As a result, sellers in Russia may end up subject to double VAT on their sales. To...