Businesses operating in Russia's cross-border e-commerce market may soon face significant changes as authorities prepare to introduce new tax regulations. The move signals the end of an era of relatively unregulated growth in the sector.
New Tax Legislation on the Horizon
Roman Chekushov, Deputy Minister of Industry and Trade, recently revealed that the Russian Ministry of Finance and Ministry of Industry and Trade are jointly developing legislation to impose new taxes on goods imported through cross-border e-commerce platforms. This represents a fundamental shift in Russia's e-commerce business model, with Chinese sellers on platforms like AliExpress and Ozon expected to be particularly affected.
Addressing Tax Loopholes and Unfair Competition
The new measures aim to close existing tax loopholes where commercial quantities of goods are split into multiple small packages declared as personal imports to avoid value-added tax (VAT). While technically legal under current rules, this practice has created an uneven playing field between cross-border e-commerce and traditional import businesses, while also presenting significant challenges for tax administration.
Core Objectives of the New Tax
The primary goal of the legislation is to eliminate the cost advantage of importing bulk goods through cross-border e-commerce channels by preventing split shipments. The changes will fundamentally reform VAT collection to create a fairer competitive environment.
Impact on Chinese Sellers
Chinese merchants who dominate platforms like AliExpress and Ozon will face particular challenges. Business models that rely on splitting orders and tax exemptions to reduce costs will become unsustainable. The increased costs of importing bulk goods will require sellers to completely reevaluate their pricing structures.
Part of Broader Tax Reform
The new tax represents another step in Russia's ongoing reform of cross-border e-commerce taxation. Previous measures include plans to gradually reduce tax exemptions for cross-border packages starting in 2026 and the introduction of VAT on small parcels from 2027.
Strategies for Adaptation
As the market transitions from rapid expansion to regulated competition, sellers must move beyond tax optimization strategies and focus on compliance, branding, and localization. Strengthening supply chains and local service capabilities will be essential for long-term success in the changing market environment.
Key Recommendations for Businesses
- Monitor policy developments closely to stay informed about legislative changes
- Engage professional tax advisors to ensure compliance with new regulations
- Optimize logistics and customs declaration processes to improve efficiency
- Reassess pricing strategies to maintain profitability while staying competitive
- Enhance localization efforts to better understand and serve Russian consumers
- Develop brand identity and strengthen supply chains to improve product quality
Market Consolidation Expected
The new regulations are likely to raise market entry barriers and accelerate industry consolidation. Only businesses that achieve tax compliance, operational standardization, and successful localization while building strong brands and supply chains will emerge stronger in Russia's evolving e-commerce landscape.