Amazon warned Russian users about price increase for services because of the “tax on Google”
Amazon notified users in Russia on the inclusion of 2017 in the cost of using the services of a value-added tax of 18% . This step the company is explained by the introduction by the authorities of the countries of the so-called “tax on Google”.
The President of Russia Vladimir Putin signed the law this summer. Now, starting from 1 January 2017, with Internet sales by foreign companies in Russia e-services, games, music, books and video products will be charged VAT at the rate of 18 % (“tax on Google”).
“We inform You that from 1 January 2017 shall enter into force the new VAT treatment of services in electronic form, in accordance with which the companies Amazon Web Services, Inc. (“AWS”) AWS Marketplace and there is a duty to charge VAT at the rate of 18% in respect of services rendered to Russian customers, not registered as legal entities or individual entrepreneurs, that is, not having the appropriate primary state registration number (“OGRN”) or basic state registration number of individual entrepreneur (“OGRN”)”.
Amazon invited users to confirm the status of a legal entity or individual entrepreneur provide information on bin or OGRN and verify that it corresponds to the official data. If the user does not provide this information until December 31, 2016, the AWS will charge VAT at the rate of 18% in respect of the relevant services.
For more information about the changes in taxation of online services in Russia Amazon recommended to look at the website of the Federal tax service of Russia.
Earlier similar was done by Google, notifying users about the inclusion in cost of products of the value-added tax of 18%. A law that comes into force on 1 January 2017, will lead to the fact that Internet services, including applications in the App Store and Google Play, the price will rise. According to analysts, the Russians should expect an increase in the cost of the games and applications by 30-50%.