Russia Will Levy Tariffs On Cross-Border Electricity Suppliers Such As Alibaba

The Russian government is considering taxing Russian Internet Co's foreign competitors, including AliExpress, Amazon and eBay.

Russian satellite news agency quoted the "business man" on September 15th, Russia.

The Enterprise Association recommends tax on foreign competitors from Russian Internet companies.

The newspaper said the Russian Ministry of economic development and the Ministry of finance are studying this issue.

The Association believes that the 1000 euros and less than 31 kilograms of pactions are exempt from VAT and customs duties, which makes the overseas e-commerce platform competitive with Russia's platform.

The amendment proposes to start the VAT payment mechanism for overseas electricity suppliers, that is, VAT should be taxed at the final price of 15.25%.

At the same time, the federal tax office has the right to request the electronic business platform to shut down its sales page to those who fail to fulfil their obligations to pay VAT.

Russia Electric Business Association estimates that in 2017, cross-border electricity providers accounted for 37% of Russia's electricity suppliers, up to 420 billion roubles (more than 7 billion U.S. dollars).

In the first half of 2017, the sales volume of cross-border electricity suppliers increased significantly, with an increase of 34%.

Ali's global sale became the favorite shopping site of the Russians in 2016

AliExpress is the only online trading platform that Alibaba has built for the global market. It is known as the "international version of Taobao" by the majority of sellers. Its Chinese name is "Global Express", which was formally launched in April 2010.

Global express for overseas buyers, through Alipay international accounts secured pactions, and the use of international express delivery.

It is the third largest online shopping website in the world.

In 2016, China Global Express to attract 22 million independent users to become the most popular Russian shopping website.

In January 2017, the site had more than 22 million independent users.

Russia's online retailer Ozon.ru ranks second, but there is a big gap between the number of users and global express, which is only 9 million.

The third place is Russian domestic appliances.

Eldorado.ru, the number of users is 7 million 500 thousand.

Russia's top five online shopping malls:

Aliexpress.ru:22194 million people

Ozon.ru: 89 million 870 thousand people

Eldorado.ru:7564 million people

Dns-shop.ru:6976 million people

Mvideo.ru:6923 million people

Research shows that the 2016 statistics show that Russia's online sales grew by more than 20% to 920 billion rubles (about 15 billion 700 million US dollars).

According to the association forecast, in 2017, online

The scale can exceed 1 trillion roubles (about 17 billion 100 million US dollars).

90% of Russia's foreign goods come from China.

At the same time, Russians are increasingly choosing to shop in foreign online stores.

Alexey Fedorov, chairman of the e-commerce enterprise association, said: "the growth of cross-border e-commerce is related to the low price of goods because of not paying taxes and fees". (Alexei Fyodorov)

He pointed out that all packages currently entering Russia are tax-free, while Russian retailers must pay all taxes and duties.

According to the data provided by the association of electronic commerce enterprises, 90% of foreign goods come from China.

Under such circumstances, Chinese retailers account for only 50% of the total income of the Russian market, indicating that the average price of goods from the country is not high.

"In a few years, Russia's domestic online business will disappear completely, we will specialize in the sale of Chinese goods, and Russia will also become a tax exempt trade market in China", Fyodorov said.

He pointed out that Russia lacks the clear law of Customs to impose tariffs on large-scale offshore vulnerabilities known as cross-border online pactions.

More interesting reports, please pay attention to the world clothing shoes and hats net.