Foreign companies began to register as part of compliance with the law "tax on Google"

Foreign Internet companies have begun to become tax registered with the Federal Tax Service in order to comply with the so-called law "on Google tax", Kommersant reports . In total, the Federal Tax Service has registered 18 companies, including Google, Apple, Microsoft, Samsung, Netflix and others. All of them will pay VAT on a par with Russian IT-companies.

A total of 39 applications for registration were filed, including from such gaming companies as Wargaming, Nintendo and Valve Corporation. FTS is also awaiting statements from the Amazon store.

The head of the Federal Tax Service Mikhail Mishutin reported on the steps taken by foreign companies to comply with Russian legislation this Friday during a meeting with the country's Prime Minister Dmitry Medvedev.
')
The law on payment by foreign companies of VAT on electronic goods and services came into force on January 1, 2017. According to the text of the law, all foreign companies operating in the sale of digital content or services in the territory of the Russian Federation are obliged to pay VAT to the Russian budget. The law was passed with the motivation to equalize in the conditions of Russian IT companies that always paid VAT on their goods and services with foreign ones.
The government hopes only in the first stages of the execution of the law to receive in the form of taxes an income of 10 billion Russian rubles. In the future, this figure may grow.

The FTS, in her opinion, did everything to facilitate the registration procedure for foreign companies. Thus, a special online service “VAT-office of Internet companies” was created on the department's website, where a foreign company can conduct VAT registration. When administering a tax, the principle of self-assessment is applied.

However, many companies have shifted the payment of VAT on the shoulders of users. For example, at the end of 2016, Google and Nintendo sent notifications to their users about the increase in the cost of digital content and subscriptions to services by 18-20% due to the need to pay VAT. At the same time, the opinion of the industry about who should pay VAT is divided. For example, Sony and Wargaming have announced that they do not intend to increase the cost of their services and content.

It is necessary to understand that the new law concerns not only foreign companies, but also Russian entrepreneurs and organizations that interact with them. If a foreign company is not registered with the FTS, then when paying for any of its services, the Russian company or entrepreneur must pay agency VAT . This applies, for example, the use of foreign freelance exchanges, the purchase of advertising or other services.