Facebook registered with Russian Tax Service for payments of “Google Tax”

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Russia’s Federal Tax Service (FNS) has registered the first hundred foreign IT companies willing to pay the VAT on the sale of virtual goods in Russia. We are talking about the so-called “tax on Google”. Among the registered companies are Facebook, Apple Distribution International, Google Commerce Ltd, Microsoft Ireland, Netflix International B. V., Wargaming Group Ltd, Bloomberg, Financial Times, etc.

Half of the hundred registered companies sell software and computer games, 30% sell books, music and games, another 15% are trading platforms and services of online booking. The first tax payments from foreign Internet companies will be made into the budget starting April 25, 2017.

Earlier, in June 2016, the state Duma passed a bill that would impose VAT at the rate of 18% for foreign IT companies that are engaged in the sale of digital content and software in digital form, hosting, domain registration, storage and processing of information and provide other services. Representatives of the IT industry called the initiative “tax on Google”.

The new tax came into force on 1 January 2017. In March of this year, Apple announced to its users that the cost of annual subscription to iTunes Match will be increased by 16.3%, to 929 RUB., due to the new fees.

At the same time, the Ministry of Finance said that the budget will be able to receive from the taxation of foreign Internet companies up to 10 billion rubles annually.

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