MinFin: software from foreign sites should not be taxed by Google

The Ministry of Finance of Russia believes that paid use of software from sites of foreign companies should not be taxed by Google. As an example of such software, “cloud” office programs can be cited, Izvestia writes. As you know, since the beginning of this year in Russia came into force amendments to the Tax Code (NK), which was called the "tax on Google."

The point is that foreign companies operating in Russia must pay VAT on electronic services provided to citizens of the country. These amendments concern, for example, paid applications for iOS and Android platforms, the operation of Uber, the rental of apartments through AirBnB. A number of providers of electronic services have already registered with the Federal Tax Service, in some cases the tax will be paid by the Russian partners of foreign companies.

With regard to programs located on servers outside the Russian Federation, the question of falling under the "tax on Google" when using such software was asked by one of the Russian organizations using software over the Internet. The work is carried out "by providing the access code to the programs posted on the official website of the foreign organization." This organization asked the Ministry of Finance to pay VAT on financial transfers to a foreign company.
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Having analyzed the request, the specialists of the Ministry of Finance of Russia came to the conclusion that Article 149 of the Tax Code exempts transactions on the transfer of rights to use the results of intellectual activity under a licensing agreement from VAT. According to some experts, there are quite a lot of similar 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, ”recalled Arseny Shcheltsin, director for project activities at the Internet Development Institute (IRI).

According to Nikita Isayev, director of the Institute of Actual Economics, all the services that are provided to Russians on the websites of foreign companies should be taxed: “Use cloud storage — pay, watch movies and series in foreign online cinemas — pay, download games for money — pay , listen to music through streaming services - pay, order advertising - pay. There are no exceptions.

In the explanatory note to the draft law “tax on Google”, the authorship of deputies Andrei Lugovoy and Vladimir Parakhin talked about “improving the rules for taxing transactions performed via the Internet to sell Russian companies access to databases, software, games, music, books, video products, etc. ". According to the authors of the amendments, the situation in which Russian companies pay VAT on the sale of electronic services, while foreign ones do not, is unfair. Lugovoy claims that the “Google tax” will bring an additional 10 billion rubles a year to the country's budget.