New VAT rules for marketplaces and customs in 2025: what sellers from the EAEU need to know
From 2025, new VAT rules will come into force for companies selling goods via marketplaces in Russia. These changes will affect both Russian and foreign sellers from the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, Kyrgyzstan). The legislative changes make significant adjustments to the procedure for calculating and paying VAT, requiring sellers to take a more active part in the tax process.
New rules for foreign sellers from the EAEU
Until recently, the VAT procedure for foreign companies from the EAEU selling goods to individuals in Russia via marketplaces was characterised by a simplified procedure. However, from 2025 the situation is changing dramatically. Now foreign companies (legal entities) from the EAEU selling goods to Russian citizens are obliged to calculate and pay VAT in Russia on their own. This applies to all transactions, regardless of the presence or absence of intermediaries in Russia. Moreover, from 2025, a similar procedure applies to individual entrepreneurs from EAEU countries.
Role of intermediaries (agents)
Where a Russian or foreign intermediary from the EAEU (a marketplace or other company acting as an agent) is involved in a transaction, it is that intermediary which becomes the tax agent. This means that the intermediary is responsible for calculating and withholding VAT and remitting it to the budget. It is important to note that even if there is an agent, a foreign seller is still obliged to register with the Russian tax authorities.
Registration with the Russian tax authorities
In order to comply with the new procedure, sellers and agents from EEU countries must register with the Russian tax authorities. The procedure is similar to the registration of foreign performers of electronic services. For registration it is necessary to provide:
- Application: To be made in accordance with the established procedure.
- Proof of legal status: This may be an extract from the register of organisations of the relevant foreign country.
It is possible to submit documents in three ways:
- Via the Federal Tax Service service in the ‘VAT Office of the Internet Company’: This option is suitable for organisations that have not previously been registered with the Russian tax authorities.
- Via the ‘Personal cabinet of a taxpayer of a foreign organisation’ on the website of the Federal Tax Service: This method is available if the legal entity is already registered in the Russian tax system.
- On paper in person through a representative: This option is an alternative and requires a personal visit to a tax inspectorate.
Russian companies and VAT
Russian companies selling goods via the internet within the EAEU retain the right to deduct VAT. This allows them to offset VAT paid on the purchase of goods for subsequent sale.
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