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E-commerce in Russia should be regulated by both VAT and duties - Deputy Prime Minister

It is necessary to very carefully, gradually reduce the duty-free trade threshold and prepare, first of all information systems, to the introduction of VAT, Dvorkovich said

Deputy Prime Minister Arkady Dvorkovich Vladimir Gerdo/TASS

Deputy Prime Minister Arkady Dvorkovich

© Vladimir Gerdo/TASS

IZHEVSK, January 13. /TASS/. Electronic commerce in Russia should be regulated both VAT and duties, it is necessary to start with reducing the threshold of duty-free trade, Deputy Prime Minister Arkady Dvorkovich told reporters.

"My point of view is that both mechanisms should be used," Dvorkovich said, answering a question from TASS question.

"It is necessary to very carefully, gradually reduce the duty-free trade threshold and prepare, first of all information systems, to the introduction of VAT so that it can be done simply and that it does not impose additional administrative costs on the business. Preparation takes time. At the first stage there will be, I think, a slight decrease in the threshold of duty-free trade," he added.

The initiative to introduce VAT for foreign online stores belongs to the Association of Internet Trade Companies. According to the association, the state has already lost around 300 bln rubles ($530.26 mln). According to Association’s calculations, in 2018 collection of VAT from foreign online stores could bring 64 bln rubles ($1.13 bln) to the budget.

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