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20.11.2023 (Обновлено: 27.11.2023 10:42)

EAEU tax policy and administration are being improved

Practical issues of improving the procedure for collecting indirect taxes in mutual trade across the Eurasian Economic Union, as well as issues of information exchange between the tax authorities of the EAEU countries were considered at a meeting of the Advisory Committee on Tax Policy and Administration chaired by Arkady Khachatryan, Director of the Financial Policy Department of the Eurasian Economic Commission, at the EEC headquarters on November 17. The meeting was attended by the heads and experts of authorized state bodies in charge of the EAEU tax policy issues.

Members of the Advisory Committee also looked into an overview of the main changes in tax legislation affecting mutual trade of the EAEU countries: tax administration, VAT, excise duties, collection of personal income tax, information exchange, international taxation and digitalization of tax administration, including electronic services.

As part of monitoring the status of international treaties (agreements) in the field of taxation, the meeting reviewed changes to the Treaty on the Eurasian Economic Union dated May 29, 2014, which have been introduced or are being ratified. Special attention was paid to changes to the 2nd Major Protocol, which was signed on March 31, 2022 and is awaiting ratification.

As was noted by Nurmatbek Mambetaliev, the executive secretary of the Advisory Committee and Head of the Tax Policy Section of the EEC Financial Policy Department, the meeting participants emphasized the issue of e-commerce taxation in the EAEU. The Commission and the authorized bodies of the Union States will continue to work on agreeing the relevant draft Protocol (Draft Protocol on Amendments to the Treaty on the EAEU regarding the procedure for collecting indirect taxes on e-commerce in goods sold to individuals). A report on the implementation progress will be delivered at the next meeting of the Advisory Committee.

The meeting participants considered the issue of improving the exchange of information between tax authorities using information technology, as well as the progress in implementing the Agreement on the Mechanism for Traceability of Goods Imported into the EAEU Customs Territory.

With regard to tobacco products, the meeting discussed the excise duty rates, the convergence of which is provided for under the Agreement on the Principles of Tax Policy in the Field of Excise Duties on Tobacco Products of the EAEU Member States. In accordance with this document, a common indicative rate is established every five years, as well as the permissible range of deviations from it in excise duty rates established by the States of the Union. Following consultations with the parties, a package of documents On Approval of a Common Indicative Excise Duty Rate on Tobacco Products in the Member States of the Eurasian Economic Union for 2029 was prepared for consideration at the meeting of the EEC Board.

For reference

The Advisory Committee on Tax Policy and Administration was created by Decision No. 13 of the EEC Board dated March 15, 2012. The Chairman of the Committee is Bakytzhan Sagintaev, EEC Minister in charge of Economy and Financial Policy. The Committee is the Commission's advisory body on tax policy issues and improving the mechanism for collecting taxes in mutual trade.