56657
The law has set equal conditions for Russian and foreign Internet companies.
The law has set equal conditions for Russian and foreign Internet companies.

Russia Implements ‘Google Tax’

Russia Implements ‘Google Tax’

Legislation informally known as the “Google tax” ordering foreign companies engaged in online sales of electronic content in Russia to pay the value-added tax is coming into force on Sunday.
The law signed by Russian President Vladimir Putin on July 3, 2016 essentially intends to set equal conditions for Russian and foreign Internet companies. However, industry representatives noted already at the bill’s discussion stage that Russian companies using foreign marketplaces for selling their content may also fall under this law and will have to pay the VAT twice, Tass reported.
The law stipulates the introduction of an 18% VAT for foreign companies providing services to Russians in electronic form. Foreign companies will need to register on the Russian tax service’s special electronic index and pay taxes on equal footing with Russian companies operating in the same market segment.
The VAT shall be paid at the latest on 25th of the month “following the expired fiscal period”. If a foreign company has a Russian division or a contractor in the country, they will be responsible for paying the tax irrespective of whether they have an appropriate agreement with foreign corporations or not.
The document also regulates the possibility of verifying compliance with the law. Tax authorities are entitled, when auditing a foreign company, to request information about transfers of funds to it from the National System of Payment Cards, money transfer operators, clearing centers, central clearing counterparties and telecom operators. Companies failing to pay the VAT will be subject to fines and penalties.
The value-added tax will apply to granting a right to use software and databases, including access to online games and loading computer games into electronic devices. The ‘Google Tax’ will cover “granting rights to use electronic books and other electronic materials, graphic images, music and audiovisual products via Internet, including enabling remote access to them for viewing or listening”.
The VAT will cover provision of services in electronic form, advertising services on the Internet, goods and property rights sale and purchase placement services, providing a trading floor on the Internet, support and website administration.
Trading of physical goods via the Internet is not covered by the legislation. The ‘Google Tax’ will not apply to the sales of programs and databases on material media. Consulting services via email and Internet access provision services are also exempt from the VAT.

 

Short URL : https://goo.gl/03PcTS
  1. https://goo.gl/e6xMZg
  • https://goo.gl/C5uX2d
  • https://goo.gl/jlGjQe
  • https://goo.gl/C3V62k
  • https://goo.gl/14muZT

You can also read ...

Bithumb Hacked, $32m in Cryptocurrency Stolen
Cryptocurrencies dropped after the second South Korean...
South Africa GDP Shrinks
South African gross domestic product shrank 2.2% in the first...
Washington in March imposed tariffs of 25% on steel and 10% on aluminum, in a move mainly aimed at curbing imports from China.
Russia said on Tuesday it would impose import duties on US...
Saudi Arabia, which employs about two-thirds of its citizens, is chipping away at a budget deficit that ballooned to almost 16% of GDP after the oil shock of 2014, while FDI slumped more than 80% last year.
Show up, swipe in. The routine is familiar to office workers...
Taxes in Italy Drive Economy Underground
Italy grew rapidly over the 20th century, and its black market...
European businesses say it has become harder to do  business in China over the past year.
European companies complain they still face a tough business...
Australian Telecom Co. to Axe 8,000 Jobs
Australia’s dominant telecommunications company Telstra...
South Korea to Grow 3 Percent
The Organization for Economic Cooperation and Development has...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus