To pay VAT should all companies that sell apps, ebooks and music, including foreign, is considered in the state Duma. According to experts, the bill has a high chance of adoption and potential for increased prices in the App Store.
Russian and foreign IT-companies will be obliged to pay VAT. Such amendments, according to RBC, recommended consideration of the state Duma Committee on information policy, information technologies and communications Tuesday, February 16. He recommended the adoption of the document in the first reading follows from the text of the Committee’s decision.
Foreign companies are the main supplier of such services, says state Duma Deputy Vladimir Parakhin. But for downloading the program through the App Store in Russia Apple, for example, pays nothing. It’s not fair, emphasizes the Deputy. Russian companies are obliged to pay VAT, and this inequality causes them to be registered abroad, that is, to evade taxation, adds the MP. The EU, according to him, in 2003 decided to tax e-services if the buyer is in the EU, and the seller is abroad.
In late December, the bill was supported by the government “subject to modification based on the above observations” mentioned in the published review, which is signed by the chief of the government staff, Deputy Prime Minister Sergei Prikhodko.
Now from VAT exempt foreign IT companies, as well as those Russian companies that sell software licenses for personal computers and databases. For example, VAT is not paid in Russian app stores Apple Store, Google Play, the Russian company Parallels, “Kaspersky Lab” and others. If the bill is passed, these and other companies that provide electronic services on the Internet will be required to pay an additional tax from 1 January 2017.
The bill affects virtually all aspects of services on the IT market. In the current version of the document listed 12 types of electronic services, which, on a plan of deputies, should be taxed. Among them, the sale of digital content and software in digital form, hosting, domain registration, voice services over the Internet, storing and processing of information, broadcasting television and radio services for remote system administration and remote software support, system search, advertising and other services to establish contacts and (or) transactions between sellers and buyers.
