Izvestia: the Finance Ministry did not accept zero VAT on the trade online shops of the Russian Federation abroad

MOSCOW, August 21. /TASS/. Online shopping is not yet able to sell products to foreigners abroad with zero VAT, the necessary amendments to the Tax code. On Monday the newspaper “Izvestia” with reference to the letter of the Ministry of Finance in the Association of companies the Internet-trade (AKIT).

The newspaper writes that for several months AKITA proposed the Finance Ministry to introduce a simplified scheme of the processing to retail sales to foreigners with zero VAT. To Refine the list of documents that the seller needs to provide in such a situation, AKITA sent a letter to the Ministry, and a few days ago, the Association received a reply signed by the Deputy Director of Department tax and customs policy of the Ministry of Finance Alexander Smirnov.

In a letter seen by the newspaper, it is reported that the export addresses of individuals to VAT rate of zero percent is impossible. According to the Tax code to confirm the zero rate, the seller must submit to FNS a contract for the supply of the goods or a copy of it. But according to the Civil code, the contract of delivery is concluded only upon delivery of the product for the purposes of the business or the other, but not related to personal, family, home use. When purchasing a product for yourself, the buyer enters into with the seller a different agreement of purchase and sale.

“In case of sale to a legal entity VAT returns without any problems, – told the head of the AKITA Alexei Fedorov. – In the case of individuals so it turns out – in accordance with the Civil code the possibility of a return is, in accordance with the interpretation of the Tax code the Ministry of Finance – no.” He noted that this situation creates unequal competitive conditions for Russian companies before foreign, because the foreign Internet-stores of the Russian VAT is not paid, and therefore their goods are cheaper than Russian retailers.

The Ministry of economic development told the publication that the issue of zero VAT retail export worked.