On June 15, the State Duma of the Russian Federation adopted the so-called “Google Tax Law” in the third final reading. The bill got its name in connection with the introduction of VAT on the "provision of services electronically" by foreign IT companies. The full text of the bill can be found here.
What are the implications of the tax amendments for Russian intermediaries and consumers?
List of services in electronic form
The provision of services in electronic form is recognized as their provision through the information and telecommunications network, including through the information and telecommunications network Internet, automatically using information technologies.
A complete list of such electronic services is given in the new article 1742 of the Tax Code of the Russian Federation.
1. granting rights to use programs for electronic computers (including computer games), databases via the Internet, including by providing remote access to them, including updates to them and additional functionality;
2. provision of advertising services on the Internet, including using programs for electronic computers and databases operating on the Internet, as well as the provision of advertising space (space) on the Internet;
3. provision of services for the placement of proposals for the acquisition (sale) of goods (works, services), property rights in the network
4. provision through the Internet network of services for the provision of technical, organizational, informational and other opportunities carried out using information technologies and systems for establishing contacts and concluding transactions between sellers and buyers (including the provision of a trading platform operating on the Internet in real time, where potential buyers offer their price through an automated procedure and the parties are notified of the sale by sending an automatically generated message);
5. ensuring and (or) maintaining a commercial or personal presence on the Internet, supporting electronic resources of users (sites and (or) pages of sites on the Internet), providing access to them for other network users, providing users with the opportunity to modify them ;
6. storage and processing of information, provided that the person who submitted this information has access to it via the Internet;
7. real-time provision of computing power for placing information in the information system;