Thousands of stationery stores may close in Russia

Thousands of office supply stores in Russia may be at risk of closure due to unfair competition from marketplaces, Lenta reports.

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The Stationery Market Association (SMA) sent a letter to the Prime Minister Mikhail Mishustinexpressing concern about this.

The ACR believes that marketplaces enter into illegal intermediary agreements with suppliers in order to avoid paying VAT and take advantage of the benefits provided for IT companies. In addition, marketplaces actively attract self-employed people, which allows them to save on personal income tax and insurance premiums.

The association warns that such a practice could lead to the closure of many office supply stores in Russia and, as a result, the dismissal of tens of thousands of workers. To prevent these consequences, the AKR asks the government to oblige marketplaces to pay taxes on the same terms as regular online stores.

In response to this, the President of the Association of Internet Trade Companies Artem Sokolov stated that marketplaces comply with the law and do not use IT benefits for income tax and reduced social contributions. He emphasized that marketplaces provide all sellers with the same conditions and services to choose from, and the responsibility for paying taxes lies with the marketplace partners.

In Russia, a bill is being considered that would equate marketplaces with retail chains and prohibit them from hiring self-employed workers.

Clarifications

Value Added Tax (VAT) is an indirect tax, a form of withdrawal into the state budget of a portion of the added value of goods, work or services that is created in the process of producing goods, work and services.

Income tax (Personal income tax) is the main type of direct tax. It is calculated as a percentage of the total income of individuals or legal entities minus documented expenses, in accordance with current legislation.

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