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SEEC adopted creating equal conditions when charging VAT for the Union's and third-country goods

SEEC adopted creating equal conditions when charging VAT for the Union's and third-country goods

5/20/2020

The Supreme Eurasian Economic Council has approved amendments to be introduced to the Treaty on the Eurasian Economic Union, which allow for establishing equal conditions when charging VAT for the Union’s and third country goods imported into free economic zones (FEA) of the Russian Federation.

 

After the amendments come into force, a FEA resident will be granted a delay in VAT payment for 180 calendar days instead of the generally established VAT rate. Along with that, no VAT is due if such goods are sold within 180 calendar days.

 

Such amendments to be introduced to the Treaty on the EAEU are aimed at increasing trade turnover between free economic areas of the Russian Federation and other Union countries.

 

Any FEA resident of the Russian Federation who is interested in expanding the list of goods at a more favorable pricing tier will have the possibility to import the Union goods, which, as practice shows, have a lower cost as compared to similar foreign goods.

 

And the Union countries’ exporters will have the possibility to apply a zero rate and accelerate refunding the VAT previously paid when exporting goods to the territory of the Russian FEA.​