Overview

Amazon is required under Russian tax law to calculate and collect Value Added Tax (VAT) on certain fees charged to Russia-based sellers. This applies to monthly subscription fees, selling fees, and advertising fees, regardless of whether a seller is VAT-registered in Russia. Understanding how this VAT is applied, invoiced, and managed is essential for sellers operating from Russia.

Key Points / What Sellers Need to Know

• VAT applies to three fee types — Amazon collects Russian VAT on monthly subscription fees, selling fees (such as referral and commission fees), and advertising fees for all Russia-based sellers.
• VAT registration does not provide an exemption — Even if you hold a valid Russian tax registration number (SRN), Amazon is still required to charge VAT on these fees because electronically supplied services (ESS) are taxed in the country where the seller resides.
• Referral fees and tax calculation service fees are unaffected — Certain fee types, including referral fees charged by Amazon and tax calculation service fees, are not subject to this Russian VAT collection requirement.
• Monthly invoices are provided — Amazon issues monthly VAT invoices to sellers who are charged Russian VAT, which can be accessed through Seller Central's account settings.
• No sales activity still triggers VAT — Even if you have made no sales, Amazon is required to charge VAT on monthly subscription fees, as these are classified as electronically supplied services delivered over the internet.

How Russian VAT Is Calculated

Amazon charges the standard Russian VAT rate applicable to a seller's country of residence on all qualifying fees. The VAT is calculated at the time an order is placed and collected when the order ships. Amazon uses the address and payment information currently on file in a seller's account to determine whether Russian VAT applies. This means that if you update your address information, VAT may still be collected on orders that were placed before the update was made. Sellers should be aware that the timing of address changes matters, as the system references account details at the point of order placement rather than at the point of shipment or billing.