Russian Federal Taxation service together with relevant ministries and authorities develops propositions concerning VAT for overseas internet outlets selling goods and services to residents in Russia.
It is very interesting and attractive opportunity for Russian state budget. When people buy something in Russia through internet they pay VAT if company, operating internet outlet, is incorporated in Russia. But if companies, operating internet outlet, selling goods and services to residents in Russia and incorporated overseas they don’t have to pay VAT to Russian treasury.
Russian state officers believe it is not right when residents in Russia buy anything in foreign outlet and don’t pay VAT. They insist VAT must be paid in country of consumption. As alternative it could be also proposed to reduce a threshold of duty free trade.