Inventory Write-Off for Marketplace Sellers in Russia

How should a foreign-owned company write off damaged marketplace inventory in Russia?

First determine whether the units are missing, unusable or suitable for discounted sale and whether the fulfilment provider accepts responsibility. The Russian subsidiary then supports the local entry and fiscal position with primary documents. Commercial approval from headquarters does not replace this procedure.

Decide whether to remove or remeasure stock

The answer to how to write off damaged inventory depends on its condition and the prospect of recovery.

Build the supporting file

The operating agreement determines which materials the seller can obtain. The local team should link the fulfilment statement to the stock ledger and provide headquarters with support for any group adjustment.

The file should contain:

a report showing the SKU, quantity and event date;
photographs, warehouse information or delivery data;
correspondence concerning responsibility and reimbursement;
an internal act stating the carrying value and proposed treatment;
approval and proof of disposal, recycling or return where applicable.

TORG-15 and TORG-16 are not mandatory for every business. The subsidiary may use approved forms containing the required particulars.

If the report does not explain why units disappeared or who bears the cost, keep the difference under investigation instead of clearing it through expenses.

Separate the write-off from the recovery

Delivery to a fulfilment warehouse does not complete a sale. Depending on the accounting policy and transaction flow, the stock may remain in account 41 or move to account 45. The same ledger position is credited when the affected units are removed.

The policy for accounting for inventory write-off transactions should define the approval route and supporting materials. The appropriate inventory write-off journal entry then depends on the outcome:

Subaccounts and presentation may differ under the working chart of accounts. Showing the expense and expected recovery separately allows the foreign owner to see the physical reduction and outstanding receivable.

Set the fiscal treatment

A statutory entry does not establish deductibility. The outcome depends on the cause, applicable regime and supporting file.

Corporate profit tax

The local entity must substantiate the value, business purpose and legal ground. Natural loss within approved limits, shortages without an identified responsible party and damage caused by a counterparty follow different rules.

Reimbursement

Once acknowledged by the intermediary, the sum is generally included in non-operating income. The recognition date is linked to acceptance by the debtor or an effective court decision.

Simplified system

Deductible expenses are limited by a statutory list, so the treatment requires a separate assessment. Headquarters should not copy the approach used by another group entity into the local register.

VAT

Article 170 of the Tax Code does not identify stock damage as a separate ground for restoring input VAT. The seller must still prove that the units were lost, destroyed or rendered unusable rather than disposed of without being recorded.

Divide the closing responsibilities

The closing bridge should reconcile opening stock, affected units, carrying value, recognised expense, receivable and unresolved items. Expected recovery should not enter group reporting before the local operation has sufficient support.

How we support marketplace sellers

We help foreign-owned businesses reconcile fulfilment data with local books, review supporting materials and reflect write-offs, impairment and reimbursements in the appropriate period. We also prepare registers and reporting information for headquarters.

Contact us before closing the period if the operator data does not match the stock ledger or liability remains unresolved. We will identify open items and determine how to present them in the local accounts.

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