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Reading: Software from foreign sites should not be taxed on Google / Geektimes
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MYVIRALBOX > Funny Stories > Software from foreign sites should not be taxed on Google / Geektimes
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Software from foreign sites should not be taxed on Google / Geektimes

MVB Staff
Last updated: April 25, 2024 3:35 pm
MVB Staff
Published: April 15, 2017
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The Ministry of Finance of Russia believes that the paid use of software from foreign companies’ websites should not be “taxed on Google”. As an example of such software can be resulted in “cloud” office programs, Izvestia writes. As is known, since the beginning of this year in Russia, amendments to the Tax Code (NK) came into effect, which was called the “tax on Google”.

It is a question of that the foreign companies working in Russia, should pay the VAT for the electronic services rendered to citizens of the country. These amendments concern, for example, paid applications for iOS and Android platforms, Uber’s work, renting apartments through AirBnB. A number of electronic service providers have already registered with the Federal Tax Service, in some cases the tax will be paid by Russian partners of foreign companies.

As for programs located on servers outside the Russian Federation, the question of the “Google tax” claim for using such software was set by one of the Russian organizations using software over the Internet. The work is carried out “by means of, placed on the official website of the foreign organization code access programs.” This organization has requested the Ministry of Finance on the need to pay VAT on financial transfers of foreign firms.

Experts of the Ministry of Finance of Russia, having analyzed the request, came to the conclusion that Article 149 of the Tax Code exempts from VAT transactions on the transfer of rights to use the results of intellectual activity under a license agreement. According to some experts, there is a lot of such software: “There are many such transactions between legal entities of the Russian Federation and non-residents. These are all kinds of cloud and other services, “Arseniy Sheltsin, director of project activities at the Institute for Internet Development (IRI), recalled.

According to the director of the Institute of Contemporary Economy Nikita Isayev, the tax should be imposed on all services, which are rendered to Russians without exception Sites of foreign companies: “Use cloud storage – pay, watch movies and serials in foreign online theaters – pay, download money for games – pay, listen to music through streaming services – pay, orders aete advertising – you pay. There are no exceptions. ”

In an explanatory note to the draft law on the “tax on Google” authorship of deputies Andrei Lugovoy and Vladimir Parakhin spoke of “improving the rules of taxation of transactions performed through the Internet, the sale of foreign companies to Russian consumers access rights to databases, software , games, music, books, video, and so on. ” According to the authors of the amendments, the situation under which Russian companies pay VAT on the sale of electronic services, and foreign ones – no, is unfair. Lugovoy argues that the “tax on Google” will bring the country’s budget an additional 10 billion rubles a year.

MVB Staff
MVB Staff

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