A group of State Duma deputies is proposing to introduce zero value added tax (VAT) for online stores selling food and non-food products.
The bill has been submitted for consideration to the lower house of the Russian parliament. “Foreign Internet sellers who are not registered in Russian jurisdiction do not pay VAT, but receive income from the sale of goods to Russian buyers,” the explanatory note says. At the same time, Russian online retailers pay 20% VAT, which puts them in an unequal position compared to foreign ones, according to the authors of the bill.
In their opinion, the proposed benefits will contribute to the development of domestic Internet commerce and will allow customers to purchase goods at competitive prices without visiting shopping centers, which is important for maintaining health during a pandemic.