The Ministry of communications supported the idea of imposing VAT on foreign software (SW). In particular, they talked about paying tax when buying apps in online stores App Store and Google Play. With a similar bill this week were made by the deputies of the state Duma.
“The whole world is going the way of binding the provision of services on the Internet known as the landing place of the address of the subscriber. This is only what has been done in Europe. It is obvious that the border should not mean lawlessness from the point of view of taxation. If the service is provided in the Russian Federation, the tax and fact of rendering the service should appear in Economics and accounting in Russia. This is generally correct”, – quote “Izvestia” Minister of communications Nikolay Nikiforov.
The Minister noted that a bill to impose VAT on foreign software must be agreed with the Ministry of Finance.
December 4, sources said on the bill about the taxation of foreign companies VAT for the provision of electronic services in the Internet. It was prepared by the deputies of the state Duma Andrei Lugovoi (LDPR) Vladimir Parakhin (“Fair Russia”).
According to the document, the foreign company will have to pay in Russia, the VAT for supply to local customers, photos, ebooks, music, movies, games, hosting services and advertising on the Internet. The same requirement applies to Russian companies that sell their services on behalf of foreign companies.
In June it was reported that the Ministry of Finance decided not to tax telecommunications services, which foreign IT-giants have in Russia. This means that when you buy applications, video and audio content in the virtual shops of the Russian users, VAT on these services are not paid to the Russian budget.
Then the initiators of the idea to the staff of the presidential administration, working with the assistant to the President Igor Shegolev, representatives of Roskomnadzor and the state Duma decided that Apple and Google are definitely underpaid taxes to the Russian budget. As an example, consider the situation when the Russian users buy in online stores iTunes App Store and Google Play apps, music and movies to their mobile devices, these payments are not subject to taxes in Russia have been making purchases directly from foreign companies.
The participants of the meeting agreement was reached on the need to develop the mechanism of additional taxation is to decide how to force foreigners to pay VAT on income from the sale of content through cloud services.
