Putin approves "Google tax"
Russian President Vladimir Putin has ordered six Russian agencies and the Institute for the Development of Internet to change the legislation to allow for the introduction of value added tax (VAT) on the sale of services in Russia by foreign companies such as Google and Apple, Russian newspaper Vedomosti has reported, with reference to the official website of the President of the Russian Federation.
"The draft law on the introduction of such VAT was submitted to the State Duma in December last year. Today, when the users buy apps, music and movies in online Google Play store and the Apple AppStore, the companies do not pay VAT in Russia from these purchases," the report says.
Ensuring equal working conditions may mean, in particular, the introduction of value added tax (VAT) on the sale of services in Russia by foreign companies such as Google and Apple.
Read alsoTASS: Russia court orders Google to pay penalty for reading private e-mails"There is a situation in the Russian market when it is more profitable for Russian consumers to buy content from foreign companies because its cost does not include value added tax (VAT)," the authors of the draft law explained. For this reason, such services of the Russian companies become less attractive. VAT should be levied on the territory where the consumers reside, according to Russian MPs.
Read alsoRussia means Mordor in Google Translate glitchIn order to implement this idea, the State Duma of the Russian Federation proposed to cancel the preference for software developers, which exempts them from VAT on the sale of exclusive rights to programs and databases.
Another order of Putin is to extend the reduced insurance premiums for the domestic IT-companies.