On 30 March 2026, the Government of the Russian Federation submitted to the State Duma Draft Law No. 1191451-8, which provides for amendments to the Russian Tax Code with respect to VAT on the import into Russia of certain goods from the member states of the Eurasian Economic Union (EAEU) and their subsequent sale.
The new provisions of Article 54.2 of the Russian Tax Code will apply to goods subject to mandatory marking by means of identification tools or to traceability requirements. The relevant lists of goods are set out in Resolution of the Government of the Russian Federation No. 1110 dated 1 July 2021 and Decree of the Government of the Russian Federation No. 792-r dated 28 April 2018.
For such transactions, the price will have to fall within an arm’s length price range. If the actual price is below the lower end of that range, the minimum value of the range will be used for VAT purposes. At the same time, the procedure for determining the arm’s length price range is to be established by a separate resolution of the Government of the Russian Federation, which creates significant legal uncertainty.
The proposed mechanism is intended to apply not only to transactions between related parties, but also to dealings with independent counterparties. At the same time, the tax authorities will be entitled to request transport, shipping, contractual and other documents related to the import and sale of such goods, including outside the framework of tax audits.
For businesses, this means tighter control over pricing in connection with the import of certain goods from the EAEU. It already makes sense to assess whether the imported goods fall within the scope of the new rules and whether the prices applied are comparable to the market level. At the same time, it will not be possible to fully assess the implications of the new rules until the procedure for determining the arm’s length price range is adopted. If the draft law is passed, the relevant amendments are expected to enter into force on 1 January 2027.