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EAEU to settle issue of charging VAT on e-commerce

The Council of the Eurasian Economic Commission (EEC) instructed the commission, together with the governments of the countries of the Eurasian Economic Union, to prepare proposals providing for the collection of indirect taxes within the framework of mutual electronic commerce based on the principle of the state of destination. EEC press service reports.

«To date, the unsettled taxation in the framework of mutual electronic trade in goods imported to individuals between the countries of the Union is one of the problems that hinders the further development of the industry,» EEC Minister of Trade Andrei Slepnev said.

Because of this, cases of double taxation arise when goods are sold from the Internet site in one of the EAEU states to consumers in another country of the Union.

As a result, the potential of e-commerce is not fully revealed, and its growth rates within the EAEU, in comparison with e-commerce with third countries, turn out to be much lower. To solve the problem, the order of the EEC Council was adopted. It is planned to discuss the prepared proposals at the level of deputy prime ministers of the Union countries in the first quarter of 2022.