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| 7 Life Hacks for Selling Goods Abroad: How to Pay VAT and Quickly Find Clients. |
Expanding your business to international markets can be an exciting yet challenging venture. To help you navigate this journey, we’ve compiled some useful tips and government support programs, provided by the National Project "International Cooperation and Export," that every exporter should know.
Let's explore these 7 life hacks to boost your overseas sales and optimize your VAT payments.
1. Certify Your Products Efficiently
When selling goods internationally, you’ll need a phytosanitary or veterinary certificate to confirm the product’s safety and quality compliance.
Without these, clearing customs becomes impossible. Certification can be done in Russia or abroad, depending on the market's regulations.
The cost ranges from a few hundred rubles to millions, especially for items like kosher food, which require strict standards.
The good news? Government support allows exporters in agriculture and industry to save up to 90% on certification costs.
While 2021's budget is already used up, keep an eye on updates to take advantage of this benefit in the coming years.
2. Save on Product Modernization
Adapting your product to meet the standards of a foreign market is often necessary, especially in industries like electronics, metallurgy, chemicals, and pharmaceuticals.
However, modernization can be expensive and may require research and development.
The Russian government offers support by covering up to 70% of these expenses. This includes labor costs, equipment maintenance, and even fees for intellectual property registration.
The only condition is that your expenses must have been accumulated within the last 36 months and finalized no more than a year ago.
3. Reclaim 80% of Your Logistics Costs
For exporters of civil industrial products, like automotive or medical equipment, you can reclaim up to 80% of your logistics costs.
This includes fuel, freight charges, and other transportation expenses for a single delivery period, which is typically 12, 24, or 36 months.
From 2022, the period will be calculated from July 1 of the start year to June 30 of the end year.
While this support mainly applies to civil industrial goods, agricultural and food exporters can also take advantage of similar benefits. Check the Ministry’s list to see if your products qualify.
4. Apply for a 0% VAT Rate
Exporting goods allows you to claim a 0% VAT rate, but there’s a catch—you need to justify it with the right documentation.
Make sure to submit the required paperwork to tax authorities within 180 days from the date your goods pass customs.
If you’ve already paid VAT, you can still apply for a refund by submitting the necessary documents to your tax office.
However, you won’t be able to claim the 0% rate if your goods are sold at retail to consumers abroad, such as through marketplaces.
5. Cut Costs on International Exhibitions and Trade Missions
Attending international exhibitions and trade missions is a great way to promote your products and secure international clients.
The Russian Export Center (REC) provides financial support to help cover the costs of participation. You can find a list of supported events on their website and apply for funding.
Even if your preferred event isn’t on the list, you can still attend and apply for partial compensation after the fact. The key is to secure an export contract during the event.
6. Quickly Find Your First Overseas Clients
Finding international clients can be done either passively or actively. A passive approach includes creating a bilingual website, using search engine optimization, and running online ads, while an active approach involves attending exhibitions, trade missions, and directly negotiating with potential buyers.
For faster results, you can use the Export Navigator—a free service that helps identify the best countries for your product based on its customs code.
The Russian Export Center also offers upper-level client search services for free in select countries like Germany, Turkey, and China.
For other countries, they can still help but through paid services.
7. Get Special Loans for Exporting Goods
Exporters can take advantage of special credit options with low interest rates and long repayment terms.
These loans can cover expenses like raw material purchases, contractor services, and customs fees.
The loans aren’t just available to exporters—foreign buyers and their banks can also receive financial support.
Additionally, there are guarantees available for export-related transactions, such as VAT refunds or participation in tenders.
To qualify, you’ll need to meet three conditions:
- Hold an export contract for high-tech, non-commodity goods.
- Be financially stable.
- Have experience passing tax inspections for VAT refunds.
By following these life hacks, you can streamline your export process, save money, and find new clients faster, making your business’s global expansion a smoother journey.
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