The introduction of a new “digital tax” for global IT companies is a logical step after the imposition of value added tax (VAT). This was announced on Thursday, March 4, to Izvestia in the Accounts Chamber of Russia.
The department recalled that since 2017, Art. 174.2 “Features of the calculation and payment of tax (VAT) when foreign organizations provide services in electronic form.”
The Accounts Chamber also noted that if, before January 1, 2019, Russian companies and entrepreneurs, in the case of purchasing services in electronic form from non-residents, acted as tax agents for the payment of VAT – they themselves withheld VAT from the cost of services, transferred it to the budget and sent the cleared from VAT, then after this date the foreign supplier must independently register for tax accounting in Russia and pay VAT from electronic services to the Russian budget.
“The taxation of value added tax on services in electronic form is the first step towards equalizing the taxation conditions for domestic and foreign companies. It is logical that the second step should be taxation of profits. However, for the full administration of such income, it will be necessary to ensure an effective international exchange of information, ”the ministry said.
At the same time, the Accounts Chamber stressed that at present the Russian JV does not have analytical materials or information that would make it possible to draw an unambiguous conclusion about the possibility of fully monitoring the correctness of the calculation and payment of taxes on such income, if the taxpayer declares them.
Earlier that day, it was reported that the Russian government held a meeting with representatives of the information technology industry on the introduction of the so-called “tax on Google”.
It was emphasized that the new “Digital Tax” is an event that is included in the second package of measures to support the industry. It is supposed to charge an additional fee from the company that uses the data of Russians and forms an advertising policy in the territory of the Russian Federation. It was clarified that the funds received will be directed to support the IT sector in Russia, and the decision itself is expected to be made by mid-2021.
It was also indicated that during the meeting the issue of redistribution of finance with VAT, which is levied on the provision of services in electronic form by foreign organizations, was discussed.
On February 12, Roskomnadzor reported that proposals for the introduction of a digital tax in Russia for foreign IT companies could be submitted until August 1.