Google, Amazon register with Belarus' tax authorities

Google, Amazon register with Belarus' tax authorities

Photo: tobiasdeml.com

Google, Amazon and Netflix have registered with Belarus' tax authorities in order to pay VAT on electronic services. This was announced by the Minister for Taxes and Duties Sergey Nalivaiko during the visit of Prime Minister Andrei Kobyakov to the Ministry of Taxes and Tax Collection for the Zavodsky District of Minsk.

Belarus began accepting applications for registration with tax authorities from foreign companies providing electronic services after January 1, 2018.

Now the list includes 6 organizations, including Google, Amazon, Netflix, and Linkedin, Sergei Nalivaiko told media.

Uber and other companies soon plan to enter this list.

The minister recalled that changes to the Tax Code of Belarus, which provide for the taxation of foreign electronic services, were prepared as early as 2016, but came into force on January 1, 2018. Thanks to this, the companies had time to prepare for the new rules of work.

"We see that serious companies have reacted responsibly to the innovations in Belarus' law. Although they still have time to register before the end of Q1 2018, they are doing it now, in advance," said Sergei Nalivaiko.

The first payments to the budget from the foreign companies will come in April - the deadline for payment is April 22, 2018.

At the same time payers are entitled to register with tax authorities until the end of the reporting quarter in which a taxable object arises. That is, if a service was sold to a Belarusian in January 2018, then by March 31, 2018, it is necessary to register with Belarus' tax authorities.

When charging VAT, the standard rate of 20% will be applied.

Belarus has also recently adopted new IT legislation that intoduces into law such technologies as blockchain, crypto-currencies and, most importantly, creates beneficial economic conditions for residents of Belarus' Hi-Tech Park. Full document analysis is available here.

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