In October 2025, Russia’s Federal Tax Service (FNS) proposed amendments to the Tax Code that would transform the operational landscape for large online marketplaces. The draft legislation, as reported by sector outlets, aims to make digital platforms with over 10,000 partners responsible for monitoring and enforcing compliance with tax regulations among their sellers. The mechanisms outlined in the proposal include requiring marketplaces to alert sellers of suspected violations, relay seller clarifications to the FNS, and, if noncompliance persists, to block product listings or even seller accounts on official instruction. Potential penalties for platforms failing to meet these new regulatory duties may reach up to 100,000 rubles.This regulatory initiative builds on Russia’s broader trend toward greater tax transparency and administrative oversight in digital commerce. The FNS may also be empowered to request detailed partner data from platforms, set operational standards for marketplace information systems, and systematically publish compliance reports. While officials noted the legislation is under consideration—not yet finalized—the Ministry of Finance and the Ministry of Economic Development have jointly confirmed ongoing work to fortify transparency in platform-based business models.### Regulatory Paradigm Shift for MarketplacesThe proposed amendments represent a notable shift in the allocation of compliance responsibilities. Previously, marketplaces primarily acted as intermediaries facilitating transactions and, where applicable, served as tax agents under recent VAT reform for domestic and EAEU sellers. With the new proposal, platforms move toward a quasi-regulatory role, tasked not only with financial reporting, but also with direct enforcement of tax discipline among third-party merchants. This shift parallels recent Russian reforms, such as new control ratios for VAT declarations and increased self-monitoring requirements to curb unjustified deductions and fraudulent activity (VATupdate), as well as broader efforts to increase budget revenue and close administrative gaps.### Impact on E-commerce Product Feeds and Catalog InfrastructureThe integration of compliance monitoring and enforcement into marketplace operations is poised to have a significant technical and procedural impact on e-commerce product feeds, catalogization standards, and assortment management.#### Product Feed ControlMandatory monitoring of seller tax compliance introduces additional checkpoints for product feeds. Digital platforms must rapidly evaluate seller status and respond to instructions from tax authorities, potentially blocking or modifying product data within hours or days. This workflow demands robust, scalable feed management systems capable of real-time updates, automated flagging of non-compliant offers, and seamless integration with regulatory notification APIs—a challenge especially for platforms handling millions of SKUs and dynamic partner rosters.#### Catalogization and Data StandardsThe need for more granular seller compliance tracking will likely push marketplaces to tighten their catalog data standards. Seller identifiers, transaction records, and regulatory risk profiles must be reliably structured for automated reporting, swift review, and inter-system communication. Catalog completeness and accuracy become critical, not only for user experience and sales conversion, but for legal risk mitigation. Implementation of stricter documentation practices, precise mapping of product-category relationships, and uniform seller onboarding documentation will be essential.#### Listing Quality and Data CompletenessCompliance measures may contribute to an indirect improvement in product card completeness and accuracy. Platforms tasked with regulatory enforcement will need to verify seller credentials, transaction records, and possibly product-specific tax data, prompting them to require more rigorous document uploads and metadata from sellers during the listing phase. However, the risk of frequent listing suspensions or account blocks may disrupt catalog volume and diversity, particularly if sellers fail to provide timely clarifications or upload sufficient documents. For platform operators, balancing the regulatory need for detailed documentation against the market demand for fast onboarding is an emerging challenge.#### Listing Velocity and Market ResponsivenessOne immediate consequence of the new compliance workflow will be its impact on how quickly new assortment appears on platforms. Sellers flagged for possible violations may find their product cards suspended within days. Resolution mechanisms—ten-day windows for explanations, regulatory review, and subsequent confirmation—introduce uncertainty and delay, potentially deterring rapid expansion and time-sensitive launches, especially for new entrants or seasonal products. Automated and AI-based pre-screening of seller data, combined with real-time feed synchronization, are likely to become widespread technical solutions to preserve listing velocity despite regulatory friction.### Implications for No-Code and AI-driven AutomationEnhanced regulatory requirements will drive demand for more sophisticated no-code tools and AI-powered process automation across e-commerce platforms.- No-code systems will need to include modules for compliance monitoring, document verification, and automated seller communications, allowing non-technical staff to set up and adjust enforcement workflows quickly in response to changing regulations.- AI algorithms are positioned to play a central role in the risk assessment of sellers and the classification of potentially non-compliant products. Machine learning models trained on transaction data, seller history, and regulatory flags can help to identify violations earlier and reduce the manual workload for platform compliance teams.These solutions will not only mitigate operational costs in a stricter regulatory environment but may also enhance transparency and consistency of enforcement, reducing human error and the reputational risks associated with unjustified listing blocks.### Strategic OutlookThe Russian legislative move toward platform-regulated seller compliance aligns with global trends, as governments worldwide consider harnessing the digital infrastructure of marketplaces to close tax gaps in rapidly growing e-commerce sectors. Should the amendments pass, Russian platforms serving tens of thousands of sellers face a transition from passive facilitation to active gatekeeping, with downstream impacts on catalog standards, product feed management, seller onboarding, and assortment agility.Marketplaces must prepare by investing in modular compliance infrastructure, scalable data processing, and user-friendly automation in seller relations. Sellers, for their part, will need to adapt to higher transparency and provide timely, structured documentation or risk substantial revenue losses from listing suspensions.For now, the legislative trajectory remains in flux, with ongoing stakeholder discussions and prototype system designs. However, the direction of reform is clear: Russian e-commerce platform operators are on the brink of deeper integration with state oversight, requiring a harmonization of technical, operational, and legal processes to stay competitive while ensuring regulatory compliance.Source: VATupdate, Valen Legal.---The proposed regulatory changes in Russia highlight a critical trend: the increasing importance of robust data management in e-commerce. As marketplaces take on greater compliance responsibilities, the ability to efficiently manage product feeds, standardize data, and track seller information becomes paramount. This shift underscores the need for platforms and sellers alike to invest in advanced tools that streamline these processes. Expect to see further emphasis on <a href="/blog/product_feed/">product feed</a> quality, automation, and integrations with regulatory bodies as e-commerce continues to evolve. In the current development of <a href="/blog/bad-product-descriptions-how-online-stores-fix-manufacturers-mistakes/">e-commerce</a> in Russia and CIS countries, the quality of product content is a key factor affecting conversion and customer. The integration of compliance monitoring and enforcement into marketplace operations is poised to have a significant technical and procedural impact on <a href="/blog/product_feed/">e-commerce product feeds</a>, catalogization standards, and assortment management. The need for more granular seller compliance tracking will likely push marketplaces to tighten their catalog data <a href="/blog/product-matrix-in-e-commerce/">standards</a>.