[52866] Russia considers imposing VAT of up to 22% on foreign online purchases starting in 2027

Russia considers imposing VAT of up to 22% on foreign online purchases starting in 2027

The Russian Ministry of Industry and Trade has expressed support for imposing a 22% value-added tax (VAT) on goods purchased from foreign websites, as reported by various channels, including Readovka and Tsargrad. The move follows a request from the Russian Union of Leather and Footwear Manufacturers, which sought to protect local industry from competition from cheap imports. According to data from Kommersant, the shoe manufacturing market in Russia experienced a significant decline in output at the beginning of 2026, while imports captured an increasing market share.

While the ministry is considering an immediate imposition of the full tax, there is another proposal from the Russian Ministry of Finance for a phased tax increase: 7% in 2027, 14% in 2028, and up to 22% in 2029. Lentach notes that the move also includes an intention to impose customs duties and mandatory labeling on cheap products, which could lead to delays in shipments and higher prices for the end consumer.

Expert estimates cited in The Economist point to a potential price increase of 25%–30% for consumers. At the same time, sharp political criticism was voiced: Member of Parliament Oksana Dmitrieva defined it in Russian Retail as a "direct tax on citizens" that will only fuel inflation and damage the public's purchasing power. The Exploit channel also warned that the measure could push the market toward "gray import channels" that bypass customs.

Alongside the taxation issue, data was published on the recovery of the Russian automotive market. According to RBC, new private car sales recorded a 15% increase in April compared to the previous year, with the "Lada" brand remaining the market leader. Conversely, the Unian channel, which presents a more critical stance toward the Russian administration, noted that similar taxation measures on digital platforms are also being considered in Ukraine as part of commitments to the international lender (IMF).