The bill on VAT for IT companies will be considered in the State Duma

A bill on the imposition of value-added tax (VAT) on Russian and foreign IT companies has been submitted to the State Duma. This was reported by the RBC edition with reference to information from the official website of the State Duma.

According to the authors of the bill, the document is primarily aimed at foreign companies – the App Store, Google Play, Amazon. However, according to RBC, the bill in its current form will also have an impact on local organizations. In its current form, the bill affects almost every sphere of IT services: the sale of digital content (including games) and software in digital form, hosting and domain registration, storage and processing of information, and much more.

The RBC publication, citing its own sources close to the leadership of the State Duma, claims that the bill is highly likely to be adopted.

The value-added tax is 18% if the transaction is not included in the list of services and goods taxed at a rate of 10% or in the list with a rate of 0%.

The authors of the draft law were deputies Andrei Lugovoy (LDPR) and Vladimir Parakhin (Fair Russia). If the bill becomes law, the new measure will come into force on January 1, 2017.​

A source: http://www.rbc.ru