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Foreign companies paid 12 billion rubles in “Google tax” this year

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In the first quarter of this year, foreign companies operating in Russia, have already paid 12 billion rubles in "Google tax" The companies have already paid 12 billion rubles in "Google tax", as the head of the Federal Tax Service (FTS) Mikhail Mishustin said. Companies paid a similar amount for the entire last year, which means that the amount of payments transferred to the budget of the country by foreign organizations is constantly increasing.
70% of the payments come from technology giants, including Google, Apple, Facebook, and Booking.com. The funds in question are paid under the law on the payment of VAT on the sale of electronic services. The law was passed in the summer of 2016, and the tax is levied on any type of service that is sold online. These are advertising, apps, games, hosting, music, movies, etc.
The first payments began in 2017. Then for the entire reporting period, 9.4 billion rubles were received. Now registered with the FNS are such companies as Apple Distribution International, Google Commerce, Microsoft Ireland, Netflix International B.V., Wargaming Group, Bloomberg and others.
This year the tax payment scheme has been modified. Thus, foreign organizations were obliged to pay VAT for services rendered not only to the population, but also to businesses. Therefore, the list of services to be accountable to the Federal Tax Service has been expanded. The transfer of rights to use software, advertising, site support, storage and processing of information were added to it.
In order to start operating legally in Russia, many foreign companies had to register with the Federal Tax Service. The tax is payable by April 25. If a company does not become registered voluntarily, they are held administratively liable; the penalty is a fine of 10% of the income from the operation.
The tax scheme proposed by domestic lawmakers this year has caused a lot of questions from accountable companies. Thus, according to market players, the law creates "tangible inconveniences", the innovation has become an additional barrier to doing business in Russia. Frank Schauff, director general of the Association of European Businesses, said that in particular. According to him, the former order, when VAT is calculated by Russian customers, is much more convenient for business.
By early April of this year 1, 200 new companies were registered with the Federal Tax Service. They provide services to businesses. In total, the agency’s list now includes 1, 580 companies which pay tax according to Russian law.

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