Geographical discrimination: will there be a “tax on Google” law in Russia the same as in the European Union?
Participants in the Internet industry (among them are the managers of Yandex , Mail.ru Group , Rambler & Co , VKontakte , Group-IB , the Russian Association of Electronic Communications ( RAEC ) and others) agreed to support the bill, called Google tax ", Only if the preservation of" adequate compensation measures for Russian business. "
In their opinion, it is necessary that Russian companies receive a VAT refund when exporting high-tech services.
The State Duma Committee on Information Policy, Information Technologies and Communications on February 16 recommended adopting in the first reading VAT amendments for Russian and foreign IT companies.
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If amendments are made to the legislation, IT companies providing electronic services in our country will have to pay VAT from January 1, 2017.
RBC recalls that at the end of December, the bill was supported by the government “subject to revision, taking into account the comments made.”
In the current version of the document are 12 types of electronic services, which, according to the idea of deputies, should be subject to VAT, writes RBC:
Deputies Andrei Lugovoy (LDPR) and Vladimir Parakhin (Fair Russia), who amended the Tax Code governing the introduction of VAT, believe that this will lead to an increase in budget revenues by 52.8 billion rubles in 2017. This measure was originally aimed primarily at foreign companies selling through their online stores the right of access to software, games and other content.
Nevertheless, the Ministry of Finance proposed to abolish tax concessions for the sale of their products for domestic IT companies.
A year earlier, changes in the tax system started the European Union. However, the EU, unlike Russia, does not condemn anyone. Participants in the Russian IT industry require preferences. Of course, in this case it is profitable for them that their competitors will be taxed.
Innovation of the EU is aimed at eliminating inequalities between European and non-resident companies that supply digital content to consumers in the European Union. The introduction of a new formula for calculating VAT (European VAT) should increase tax revenues to the budgets of EU member states.
Prior to this, VAT for consumers in the implementation of sales within the European Union, charged, focusing on the place of registration of the seller. With the advent of the new year, they began to orient themselves towards the place of registration of the buyer. For example, after a French customer purchases a digital product from a North American company, she must pay VAT at the rate in force in France.
The new EU rules apply to all digital content that is acquired in online stores: music and video, e-books, software applications for mobile phones and computer programs. The changes will affect other commercial online services, including also online casinos.
An exception was made only for online stores Google Play and AppStore, selling applications for smartphones. Thus, developers of various applications running on Android and iOS operating systems saved them from increasing tax payments.
VAT rates in 28 jurisdictions of the European Union vary widely enough: from 15% in Luxembourg to 27% in Hungary. Therefore, it is much more profitable for an international IT business to register its commercial branches in Luxembourg.
In 2015, having lost part of tax preferences, multinational IT companies announced an increase in prices for their products and services. Thus, for states with high VAT rates, analysts announced an increase in the cost of IT products by 10-12%.
“I hope that we will end up in a situation where companies pay taxes in the countries where they earn money,” said Vestager also mentioned the recent decision by Google to pay 130 million pounds ($ 185 million) in tax to the British authorities. She refused to give an assessment of the transaction, according to which, according to the British opposition, the government got only 3% of the required taxes.
The tax on profits of transnational corporations, received in various countries of the world, is called “Google tax”. This corporation is a textbook example of tax evasion.
Using a simple scheme , Google in Ireland (as in Luxembourg) received double savings on corporate taxes. And this company is far from the only one - since 2008, when Ireland conducted reforms in response to the worsening economic crisis in the country, its corporate income rate attracted all giants, from Apple , Facebook , Blizzard , Amazon and Microsoft to transnational giants in traditional industries.
In their opinion, it is necessary that Russian companies receive a VAT refund when exporting high-tech services.
The State Duma Committee on Information Policy, Information Technologies and Communications on February 16 recommended adopting in the first reading VAT amendments for Russian and foreign IT companies.
')
If amendments are made to the legislation, IT companies providing electronic services in our country will have to pay VAT from January 1, 2017.
RBC recalls that at the end of December, the bill was supported by the government “subject to revision, taking into account the comments made.”
In the current version of the document are 12 types of electronic services, which, according to the idea of deputies, should be subject to VAT, writes RBC:
sales of digital content, digital software, hosting, domain registration, voice services over the Internet, information storage and processing, broadcast TV and radio channels, remote system administration services and remote software support, search systems, advertising and other services to establish contacts and (or) transactions between sellers and buyers.Now, foreign IT companies do not pay VAT, as well as those Russian companies that sell software licenses for personal computers and databases: Apple Store , Google Play , Russian Parallels companies, Kaspersky Lab and others.
Deputies Andrei Lugovoy (LDPR) and Vladimir Parakhin (Fair Russia), who amended the Tax Code governing the introduction of VAT, believe that this will lead to an increase in budget revenues by 52.8 billion rubles in 2017. This measure was originally aimed primarily at foreign companies selling through their online stores the right of access to software, games and other content.
However, it turned out that this will also affect Russian companies.The abolition of VAT exemptions for Russian companies may lead to an increase in the cost of services for end users. In addition, the tightening of the tax regulation of the Russian IT industry may lead to an outflow of startups from the country, told Group Head, Ilya Sachkov, told RNS.
Nevertheless, the Ministry of Finance proposed to abolish tax concessions for the sale of their products for domestic IT companies.
A year earlier, changes in the tax system started the European Union. However, the EU, unlike Russia, does not condemn anyone. Participants in the Russian IT industry require preferences. Of course, in this case it is profitable for them that their competitors will be taxed.
Innovation of the EU is aimed at eliminating inequalities between European and non-resident companies that supply digital content to consumers in the European Union. The introduction of a new formula for calculating VAT (European VAT) should increase tax revenues to the budgets of EU member states.
Prior to this, VAT for consumers in the implementation of sales within the European Union, charged, focusing on the place of registration of the seller. With the advent of the new year, they began to orient themselves towards the place of registration of the buyer. For example, after a French customer purchases a digital product from a North American company, she must pay VAT at the rate in force in France.
The new EU rules apply to all digital content that is acquired in online stores: music and video, e-books, software applications for mobile phones and computer programs. The changes will affect other commercial online services, including also online casinos.
An exception was made only for online stores Google Play and AppStore, selling applications for smartphones. Thus, developers of various applications running on Android and iOS operating systems saved them from increasing tax payments.
VAT rates in 28 jurisdictions of the European Union vary widely enough: from 15% in Luxembourg to 27% in Hungary. Therefore, it is much more profitable for an international IT business to register its commercial branches in Luxembourg.
In 2015, having lost part of tax preferences, multinational IT companies announced an increase in prices for their products and services. Thus, for states with high VAT rates, analysts announced an increase in the cost of IT products by 10-12%.
The average VAT rate in the European Union is 21.54%. In Russia, VAT does not exceed 18%.On January 27 in Paris, the governments of 31 countries signed an agreement aimed at increasing the transparency of corporate taxes in Europe. European Commissioner for Competition Margrethe Vestager hopes that this will put an end to the practice of corporations using different tax zones to evade taxes.
“I hope that we will end up in a situation where companies pay taxes in the countries where they earn money,” said Vestager also mentioned the recent decision by Google to pay 130 million pounds ($ 185 million) in tax to the British authorities. She refused to give an assessment of the transaction, according to which, according to the British opposition, the government got only 3% of the required taxes.
The tax on profits of transnational corporations, received in various countries of the world, is called “Google tax”. This corporation is a textbook example of tax evasion.
Using a simple scheme , Google in Ireland (as in Luxembourg) received double savings on corporate taxes. And this company is far from the only one - since 2008, when Ireland conducted reforms in response to the worsening economic crisis in the country, its corporate income rate attracted all giants, from Apple , Facebook , Blizzard , Amazon and Microsoft to transnational giants in traditional industries.
Source: https://habr.com/ru/post/299250/
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