The State Duma approved the introduction of VAT on foreign IT companies

The State Duma of the Russian Federation has adopted a law introducing an 18% value-added tax for IT companies operating in Russia from abroad.

On June 15, 2016, it was decided that the sale of any digital content and digital software by any foreign company to Russian users is subject to VAT (the law was adopted and entered into force on the day of adoption, but VAT itself will be levied from January 1, 2017).

In addition to software, according to RBC, 18% will be charged from Western companies for providing other services to Russian users. This includes hosting, domain registration, voice services over the Internet, storage and processing of information.

Recall that the law was proposed by deputies Andrei Lugovoi (LDPR) and Vladimir Parakhin (Fair Russia).

We have already considered in detail the initiative and what its adoption can lead to. The law can be found here.

Source: RBC

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