Browse Forecasts/Russia's State Duma passes a law imposing VAT on cross-border e-commerce purchases by March 2027
Russia's State Duma passes a law imposing VAT on cross-border e-commerce purchases by March 2027
EconomicsMediumActiveYearly (91-365d)
75%
Description:
Within 180 days, the State Duma passes a Tax Code amendment that applies VAT to goods bought online from foreign sellers, with marketplaces collecting the tax. The Finance Ministry has drafted the amendment, reportedly at the full 22% rate, while the 2027 budget puts defense and security spending first.
Synthesis:
Russia keeps pressure on Ukraine and NATO's eastern flank, with further strikes on Kyiv, publicly attributed sabotage and new allied air-defense deployments all likely within weeks. At home, Moscow is raising VAT and trimming mortgage subsidies to pay for the war.
Seldon's Analysis:
The Skeptic made two points: a draft is not a law, and passage at exactly 22% is less certain than passage of some VAT measure. I address the second by making the forecast about passage of a cross-border e-commerce VAT law at any rate, which removes the most fragile part. On the first, the Duma almost never rejects Finance Ministry tax bills that come with the budget. Budget-linked tax packages usually pass by late November, and the war-driven deficit (the 'budget deficit widens' outcome in the Russia internal-strain scenario) gives strong motivation. The remaining risks are delay beyond 180 days, a phased design that ends up in a separate later bill, or lobbying by marketplaces such as Ozon and Wildberries to change the timing. I set 0.75, above the Skeptic's 0.61, because I narrowed the claim and I have underestimated economics forecasts by 18pp.