Apps in Google Play have risen by 18% after the entry into force of the “tax on Google”
From 1 January in Russia came into force a law that introduces the so-called “tax on Google”. We are talking about the introduction of value added tax to foreign companies in the field of online sales of content: applications, games, programs, music and so on. According to the publication DTF, Google is one of the first to take into account in their online services tax on digital goods.
Previously, Google did not give accurate information about how it will take account of the tax and whether developers have the option to take a payment themselves. But on Sunday, users of Google Play found that VAT is added to the cost of the games and applications.
The tax is taken into account and subscriptions, and the purchase of other goods, including books and movies. At this higher price is not displayed, and in the store — just right before paying. At the same time, the application of Russian developers are exempt from VAT.
In addition to the Google payment of tax also laid Nintendo — December 15, 2016 digital versions of its games has risen by 20%. Sony and Wargaming decided to take the payment of tax itself.
Apple still has not expressed its position on the question of taxation for users of iOS and macOS. The company has not responded to the request, however, analysts expect the rising cost of games and apps in the online App store by 30-50%.
According to the law adopted in the summer of 2016, foreign companies must embark on a special tax account in inspection of the as it is doing now the same Russian company. In the case of non-compliance of the law, a foreign company will be liable for illegal business.
Google in December had warned Russian users to raise the cost of using some services from the beginning of 2017. Similar notifications sent to Amazon.