Russia's State Duma has passed in its third reading the so-called “Google-tax” law, which would see foreign companies obliged to pay VAT on the sale of online content to Russians.

The bill requires companies that distribute or sell online to register private offices in Russia and declare information on their sales within the country.

Online services that will be subject to the 18% VAT will include applications, games and music delivered via the internet.

The law states that Russia is considered the location in which foreign companies sell content online. The amount of tax to be paid will be calculated based on the customers identified as Russian residents by their credit card number or IP addresses.

If the bill is passed by the Federation Council and approved by Russian President Vladimir Putin, the law will take effect on 1 January 2017.  

Source: The Moscow Times

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