How to calculate «Google Tax»

So called «Google Tax» has been being in force in Russia since 2017.  It was adopted to protect Russian IT companies on the e-services market. This tax oblige such corporations as Apple, Google, Microsoft, Facebook and others to pay VAT if they provide following e-services in Russia:

• advertise distribution on the Internet

• registration of domain names

• provision of right to use music

• provision of access to search engines and others.

Nowadays if foreign company provides e-services to private customers (B2C), it must calculate and pay VAT by itself. If it provides e-services to Russian companies (B2B), VAT is payable by business customers.

From January 1, 2019, the obligation to calculate and pay VAT will be imposed on foreign providers, irrespective of whether the customer is an individual or a company.