EAEU applies destination VAT to cross-border electronic services between member states from 4 March 2024

What changed in detail

The Protocol of 9 December 2022 amending the Treaty on the Eurasian Economic Union of 29 May 2014 sets the procedure for levying indirect taxes on services supplied in electronic form between member states. It was signed in Bishkek by all five members: Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Under its Article 2 it entered into force when the depositary received the last notification of ratification, which was 4 March 2024. Russia ratified it by Federal Law No. 328-FZ of 24 July 2023 and published it officially on 25 March 2024.

The annexed procedure taxes listed e-services where the buyer is:

• B2C (point 9). A seller of one member state supplying e-services to individuals located in another must register with that state’s tax authority, through its online registration resource or, where that state’s law allows, by conditional registration, and pay the VAT there.
• B2B (point 10). A seller supplying organisations or individual entrepreneurs in another member state registers there if that state’s law requires it. If it does not, the buyer organisations and individual entrepreneurs calculate and pay (withhold) the VAT themselves. Individuals never account for it.
• Covered services. The services are those on a list approved by the Council of the Eurasian Economic Commission; the Council approved a list of 14 services on 27 September 2023.

What it means

The rule has been in force since March 2024 and remains the EAEU framework for intra-union digital services. In practice a seller in one member state supplying a listed e-service to consumers in another registers and pays VAT in the consumer’s state. For B2B sales, whether the seller registers or the buyer self-accounts depends on each destination state’s domestic law, so the answer differs by country. Note that the in-force date is 4 March 2024: the protocol itself sets no later application date. Member states’ own platform and e-commerce VAT changes since 2024 sit alongside this protocol rather than amending it.