VAT in e-trade to be paid in EAEU destination country

At the meeting of the Eurasian Intergovernmental Council, Ruslan Beketaev, EEC Minister in charge of Economy and Financial Policy, presented the main conceptual approaches and mechanism of charging VAT in e-trade by natural persons in the territory of another EAEU State according to the principle of destination country.

The mechanism for charging indirect taxes on the principle of destination country provides for:

- remote and simplified registration of websites for tax purposes and VAT payment;

- authorizing marketplaces for tax agent functions to pay VAT for individual sellers,

- transferring information to the tax authorities to monitor the accuracy of tax assessment, withholding and remittance.

The Heads of Government of the EAEU countries stressed the importance of these approaches and instructed the Ministries of Finance, tax services and the Union's authorized bodies to elaborate within 10 days a draft of making relevant amendments to the Treaty on the EAEU and Annex 18 thereto.

"The e-trade market develops rapidly and our common task is to create optimal and favorable conditions for its development, without detriment to the state budgets of the Eurasian Economic Union Member States", Ruslan Beketaev is confident.