Roskomnadzor requires Netflix to pay taxes and store a user base in Russia

This year, the popular Netflix service began to work in Russia, which Roskomnadzor subsequently drew attention to. The latter demanded compliance with the latest laws of the Russian Federation, including the law on personal data of users.

As it became known , in January Netflix received a request from Roskomnadzor to localize user databases in the territory of the Russian Federation. This was told by the head of department, Alexander Zharov, to the publication Rossiyskaya Gazeta.
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“In addition, since the Netflix service is paid, it is obvious that the company must pay taxes in the territory of the Russian Federation.

Media Communication Union (MKS, unites the largest Russian telecom, media and Internet players) is already developing a bill to regulate the activities of such services.

It should be prepared by mid-March. Of course, the sphere where such large transnational players work should be regulated. All services should have equal rights and opportunities, ”said Zharov.

Before September 1, there should be new proposals for changes in the domestic legislation, which are aimed at ensuring equal conditions for the activities of Internet companies in Russia. Such an instruction was sent by Russian President Vladimir Putin to the Federal Antimonopoly Service, the Ministry of Finance, the Federal Tax Service (FTS), the Ministry of Industry and Trade, the Ministry of Communications and Mass Media, the concerned agencies and the Internet Development Institute (IRI).

Since many foreign Internet companies operate without representative offices on the territory of the Russian Federation, they do not pay taxes on the territory of the country. On the other hand, the majority of proposals on bills have not yet found support from the Internet public. Thus, users and experts perceived the bill on the VAT taxation of the process of purchasing applications in the App Store, Google Play or Netflix extremely negatively. As a means of identifying users, lawmakers propose automatic identification by IP address or bank card number, which can also be inconvenient for many companies. In addition, services are required to store all user data in the country.

Representatives of Netflix have not responded to the request of Roskomnadzor.