State Duma approves immediate 22% VAT on foreign-seller purchases

The State Duma passed in the first reading a bill imposing VAT at a rate of 22% on goods that Russians buy from sellers outside the Eurasian Economic Union through marketplaces. The tax is planned to take effect on January 1, 2027.

On October 29, the State Duma passed in the first reading Bill No. 617-9, which would introduce VAT on goods that Russians buy from foreign sellers through marketplaces and online stores. The new rules are proposed to take effect on January 1, 2027.

The tax would apply to purchases made by individuals from sellers in countries outside the Eurasian Economic Union. The marketplaces themselves would be required to transfer the tax to the budget as tax agents. The changes would have the greatest impact on goods ordered directly from China.

Онлайн-заказ с зарубежной площадки и надпись «НДС 22% с 2027 года» (Новости Калуги)

No gradual increase

The 22% rate is proposed to take effect immediately. The Finance Ministry had previously considered a gradual tax increase: 7% in 2027, 14% in 2028 and 22% from 2029. VAT would also apply to purchases worth up to €200, which are currently exempt from import duties; the tax and customs payments would be regulated separately.

According to the Finance Ministry's estimate, the measure would bring the federal budget about 75 billion rubles a year. The ministry does not expect the new tax to drive up prices, but experts forecast higher prices for clothing, footwear, cosmetics and electronics, as well as a 30–40% decline in demand for cross-border purchases.

Changes before the second reading

The State Duma's Committee on Budget and Taxes has proposed clarifying, before the second reading, the list of taxpayers, the procedure for calculating the tax base and the application of the rate depending on whether the tax is included in the price of the goods. The rules must also address VAT refunds if a buyer cancels an order or returns a product. The final parameters of the tax may still change.

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