Google Taxes have been changed

Less than a year from the date of entry into force of amendments to the Tax Code, which the media dubbed "Tax on Google", as it made significant changes.



Published Federal Law of 27.11.2017 N 335- , which changed the procedure for calculating the tax on electronic services provided by foreign organizations.

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Recall that “services in electronic form” include a wide range of transactions from the acquisition of licenses to hosting and selling software through foreign sites.



Adopted amendments will affect all companies that purchase such services from foreign suppliers.



We distinguish two main clarifications in the Google Tax.

1. Buyers no longer pay VAT on the supplier.

The duties of a tax agent for the calculation and payment of VAT in the case of purchasing services in electronic form from foreign organizations have been removed from Russian organizations and entrepreneurs.



Now the responsibility for the calculation and payment of VAT assigned to a foreign organization providing services in electronic form, or its agent involved in settlements with the buyer.



You can breathe a sigh of relief. Looks like the experiment with tax administration was a success. Therefore, the previously established restriction on the payment of VAT only for individuals from foreign suppliers was withdrawn and obliged to pay for all buyers, including commercial ones.

2. Buyer on DOS may set off VAT

In the case of the acquisition of services in electronic form from foreign organizations, the VAT charged can be credited without invoicing. in the presence of the contract and the allocation of VAT invoice.



This is a direct consequence of the first paragraph. The buyer will be deprived of the possibility of offsetting the VAT paid by him as a tax agent.



Now, for offsetting, a foreign organization must be tax registered as a tax payer for services in electronic form. To confirm the payment of VAT, an agreement with a foreign organization and / or and (or) a settlement document will be required, highlighting the tax amount and specifying the TIN and KPP of the foreign organization, as well as documents for transferring the payment, including the tax amount, to the foreign organization.



Changes in the part of VAT on services in electronic form come into force on January 1, 2019.