Russia: Limits on fees paid to food retailers | KPMG | GLOBAL
Share with your friends

Russia: Limits on fees paid to food retailers

Russia: Limits on fees paid to food retailers

Federal Law # 273-FZ (2016) amends existing trade law with respect to the maximum amount of fees that can be charged by retailers of food products and supplies.


Related content

In general, the new measures reduce to 5% (down from 10%) of the maximum receivable that a retailer under a supply contract for food products may receive. The 5% limit applies to the cost of the purchased goods, net of value added tax (VAT) and excise duties charged by the supplier. 

The types of remuneration subject to the 5% limit is "open." The fee is no longer limited by volume bonuses and allows for consideration of the most common types of fees paid to a retailer, in particular:

  • Fees (e.g., premiums, bonuses) for purchasing the agreed volume of goods 
  • Service fees for the promotion of goods (the new law lso introduces the definition of such services) 
  • Service fees for pre-sale preparation, processing, and packaging of goods 
  • Fees for logistics and “other similar” services


Read a 2016 report prepared by the KPMG member firm in Russia: Cutting retailers’ fees under food products supplies – any alternatives?

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal