Russia Plans Phased VAT on Cross-Border Goods, Potentially Raising Costs for Overseas Sellers

July 13th, News: A risk assessment released by the Russian Tax Policy Center for 2026 indicates that due to the temporary VAT exemption for overseas cross-border sellers, tax revenue losses for the current year are projected to reach 123 billion rubles. To balance the tax burden between domestic merchants and foreign sellers and to address the fiscal shortfall, the Russian Ministry of Finance has submitted a new tax bill to the government. The bill proposes a phased implementation of value-added tax (VAT) on overseas goods imported via e-commerce platforms. It outlines a three-year tiered tax rate schedule: a 7% VAT rate for cross-border goods in 2027, increasing to 14% in 2028, and aligning with the full standard rate of 22% starting from 2029. Furthermore, the bill introduces differentiated taxation based on product value. Goods valued below 200 euros will only be subject to VAT, while goods exceeding 200 euros will incur import duties in addition to VAT. Currently, a significant number of Chinese cross-border sellers on major platforms like Wildberries and Ozon still benefit from tax exemptions. If the new policy is formally implemented, operational costs for overseas-sourced goods will continue to rise, further squeezing profit margins for low-price, high-volume sales models. Product categories such as high-value home appliances, home goods, and apparel will face particularly significant cost pressures. Industry participants need to prepare in advance by optimizing product pricing models to account for potential tax increases; adjusting inventory structures to reasonably allocate goods below and above the 200-euro threshold, thereby reducing costs associated with combined tariffs; and actively deploying local drop-shipping and Russian warehouse distribution models to meet local tax compliance requirements. In the long term, as the tax burden for domestic and foreign sellers gradually converges, the competitive advantage of relying solely on low prices will diminish. Products with differentiation and high added value will gain greater market competitiveness. [This article is sourced from Ebrun Go. An automated writing robot developed by Ebrun, delivering the latest e-commerce industry intelligence via algorithm. This dog is still young; welcome to contact run@ebrun.com or leave comments to help it grow.]