“Tax on AliExpress” whether the Russians shop in foreign online stores


Most online purchases do the Russians in foreign online stores, mostly Chinese: AliExpress, Taobao. At present, foreign suppliers have an advantage over domestic: they are exempt from additional taxes and customs duties when goods are sold at a price of 1 thousand euros. Russian online shopping pay out with each item sold 18% VAT. They believe that the introduction of taxes for foreign retailers need to ensure fair competition.

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What initiative was organized by Russian online stores?

The Association of Internet Commerce (AKITA), which unites the major Russian online retailers, proposes to introduce to foreign Internet sites additional tax is 15.25% of the price of the goods.

“We proposed to the government two variants of the tax, says TASS, the official representative of the AKITA Julia Galeeva. First: the taxes paid by the Internet platform and can lay their value in their own fees with providers. Penalties for tax evasion — the page lock. The second option is not a Playground, and the vendors that sell through it, pay VAT, but then there is complexity. On Taobao, for example, a large number of sellers. It turns out that the Federal tax service will have to send the requirements about blocking of the page of each provider not pay the tax. We tend to more comfortable first option.”

To introduce a new tax, it is necessary to amend the Tax code and the law “On information”.

Like the law on “tax on Google” has been adopted and is in force in Russia since the beginning of the year. According to this document a foreign company trading through the Internet is electronic content in Russia will be required to pay VAT.

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Who and what are amendments?

Russian online stores. The market the Internet-trade in Russia in the first half of 2017, according to AKIT, increased by 22%. Turnover for the six months amounted to 489 billion, of which only 98,9 billion are domestic sellers.

Moreover, the growth in local online sales accounted for 11% and 49%. “We have a huge imbalance between import and export”, — explained the head of the AKITA Alexander Fedorov. — If cross-border trade will grow at a pace that in two years it will supplant Russian Internet trade of small household appliances and clothes.”

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Who it will affect?

According to the Nielsen study, in 2016, 88% of consumers surveyed online said that at least once made a purchase on the Internet.

Most foreign goods people are buying in China, according to AKIT. The share of shipments from this country is 90%, of EU — 4% USA — 2%. At the same time in monetary terms in China (TaoBao, Alibaba) account for 52%, EU 23%, US (e.g. Amazon, eBay) — 12%.

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What are the forecasts?

The Russians may be left without online shopping on foreign websites.

“Complication of procedure of sale of goods rather forced sellers to stop selling their products in Russia”, — quotes “Kommersant” the words of the General Director of eBay in Russia and emerging markets Europe Ilya Kretova.

The Russian market share in the global e-commerce is approximately 0.7%. “For foreign online retailers, it is not significant,” — explains the President of the National Association of remote trade Alexander Ivanov. He believes that the registration of taxpayers in the Federal tax will be de facto impossible.

“For example, on Alibaba — 3.6 million sellers on eBay — more than 1.5 million, that’s only two largest marketplace, there are others. FNS are not physically able to provide such registration,” — said Ivanov, adding that the company will not “break the system” for the Russian segment.

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