Russian Ministry of Finance Won’t Tax Apple and Google

Ministry has changed its resolution regarding this question.

04.Jun.15 9:40 AM
By Anna Nekrasova
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Russian Ministry of Finance Won’t Tax Apple and Google

Largest foreign companies Google and Apple won’t be taxed and will still operate on the territory of Russian Federation not paying VAT from selling their apps, audio tunes, videos and other products to Russian users. Russian Ministry of Finance decided not to tax the given IT companies.

According to available information Ministry representatives decided following international standards when establishing VAT to foreign countries. This question will be reviewed once again in the nearest future. For now Google and Apple are tax free enterprises.

Deputy Head of Ministry of Finance Sergey Shatalov said that they are going to wait for recommendations from Organization of Economic Cooperation. This is due to the fact that taxing e-commerce business is rather complicated procedure and is considered to be a global problem.

In addition Russia faced serious difficulties while making foreign IT giants pay VAT. This is due to the fact that both companies are not located on the territory of Russian federation and provide their services online. This is why only international courts are able to oblige such companies pay taxes including VAT.

It is noted that some IT companies which sell their services in Russian Federation are already obliged paying taxes in favor of countries where they are licensed

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