Marketplaces Save on Taxes Through Agency Model
According to Pravo.ru, marketplaces are not infrequently criticised for allegedly reducing their tax burden by using an agency model. However, this perspective overlooks the actual structure of tax payments in e-commerce. Experts point out that when assessing the tax contribution of e-commerce, the taxes paid not only by the platforms themselves should be considered but also those paid by sellers. Selling goods through a marketplace does not remove transactions from the fiscal framework. The seller pays taxes on the full value of the goods sold, while the platform pays taxes on its commission income and the services it provides. As a result, the tax burden is distributed among the participants in the chain, rather than disappearing altogether.
FBK Legal Director Maria Semenova goes into more detail:
‘The tax burden is calculated as the ratio of taxes paid to an entity's income as reported in its statement of financial results—excluding dividends, personal income tax, and insurance premiums. This is the approach recommended by the Federal Tax Service and is used as an indicator of tax compliance.
The use of an agency model does alter the structure of a company's income and the timing of tax liabilities. Under an intermediary model, the tax base of a marketplace is established from its agency fees and income from the services it provides, such as logistics, IT, advertising, and others. This financial result is what is used to calculate VAT and income tax. Therefore, when commission and service income margins are high, the tax burden on the digital platform remains substantial and cannot be reduced simply by virtue of the agency structure itself.
Legislation does not tie the availability of special tax regimes to a specific business model—whether direct sales to end customers or interaction with end customers through intermediaries, including marketplaces. The key factors that determine eligibility for special tax regimes are the level of income, the book value of fixed assets, the average number of employees, the percentage of equity held by other entities in the taxpayer's capital, and the type of activity. Accordingly, the choice of sales channel is neutral with regard to the ability to apply the simplified tax system.’
