E-services in EAEU to be subject to VAT at place of their consumption

The Eurasian Economic Commission’s Council approved some mechanisms of taxation of e-trade in services in the Eurasian Economic Union and sent it for the internal legal procedures required for its signing.

Conceptually, the taxation mechanism provides for:

- VAT payment at the place of the service consumption;

- "remote" and simplified taxpayer registration;

- simplified filing of a tax declaration.

The list of e-services has already been agreed by the EAEU countries and will be submitted to the Council for consideration upon approval of amendments to the Treaty on the EAEU.

"The e-services market grows quite rapidly. Our overall objective is to create optimal conditions for development without prejudice both to the EAEU countries’ budgets and citizens", noted Ruslan Beketaev, EEC Minister in charge of Economy and Financial Policy.