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Sunday, March 18, 2018

The fivefold Ministry is preparing to reduce the threshold duty-free import of Internet shopping

The Ministry has undertaken the development of the draft strategy for the development of Internet trade, which, as it became known “MK”, will significantly change the rules of the game in the domestic e-Commerce market. First, in the next 2-3 years, the authorities will definitely reduce the monetary threshold for duty-free import of foreign online parcel with €1000 per month to €200.

Second, will be lifted restrictions on the remote sale of medicines and jewellery. The alcohol is likely to remain under complete prohibition. Thirdly, to stimulate the network of foreign trade under the brand “Made in Russia” will be the mechanism of rebates to exporters of VAT.

photo: pixabay.com

The Ministry of industry and trade held a special meeting on the development of electronic Commerce in Russia. As told “MK” one of its members, at the end decided to develop a framework document that will define the industry for years to come. Perhaps it will be an independent strategy, and maybe it will become a part of the overall “Strategy of trade development until 2020”.

In fact, the market for online sales, despite the crisis, feeling better than offline retail taking an increasing part of the turnover. The economic situation in the country “drives” people to the Network in search of lower prices. In addition, the dynamics is affected by the powerful progress of international mail-order trade. According to the National Association of distance trade, in 2016 it may exceed one trillion rubles. The increase compared to the previous year in ruble terms 42%. The corresponding figures for imports will increase by half, reaching 350 billion. This year the number of orders made by the Russians on the foreign sites, will increase from 135 million to 250 million, the Number of purchases in local shops — from 125 million to 160 million Thus, the number of orders we are slowly returning to the level of 2014.

However, there is a more moderate forecasts. The Association of companies e-Commerce say that the overall amount of network trade this year will exceed 850 billion. The best selling goods, as before, are clothes, shoes, electronics, and appliances.

Ironically, it is crossborder”, mainly American and Chinese, mobilizes in Russia for more than 80% of new users. You could say it’s the engine of domestic online trading. Last year, foreign stores flowed more than 12 million customers. Moreover, foreign resources do another “good deed” — to teach Russians to online payments and prepayment. It is estimated that 51% of online shoppers made a Bank account specifically to pay for virtual shopping abroad.

So, what can log in the new strategy? Most likely, the conditions for duty-free import to Russia of the Internet packages will toughen. Now the cost of the product that can bring in a zero duty should not exceed €1 thousand per month. Or the total weight of imported goods — not more than 31 kg. going beyond these limits are taxed at 30% of the exceeding amount, but not less than €4 per kilogram.

In the next 2-3 years monetary threshold on the recommendation of the universal postal Union will gradually reduce to five times — up to €200 per parcel. According to the Ministry of industry and trade, a sharp decline would have led to a shortfall of budget revenues, worsening the situation of low-income citizens, has caused the emergence of new corruption schemes.

The meeting brought up another unpopular topic — the introduction of VAT to foreign online stores, to promote equal economic rights with domestic colleagues. This will require changes in the law to all foreign trade resources was the Russian representative. Many experts believe that this is unrealistic, since the system of tax administration will be greater than the amount collected. Plus the rise in the cost of goods would reduce imports.

For the development of the mail order export, including Russian-made goods, develop a mechanism of VAT refund to exporters.

Business representatives proposed to extend the limit for an anonymous transfer of electronic payments (currently 15 thousand rubles) and to remove restrictions on the remote sale of medicines and jewellery. If this happens, the turnover of online trading will grow by a third. Alcohol is likely to still leave banned.


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