Bank 131: Service for payment of the VAT at sale of electronic services in the territory of Russia

Main articles:

• 244-FZ "Tax on Google"
• VAT Value added tax

2020: Start of service for payment of a tax

Bank 131 30 of December, 2020 announced start of service for payment of a tax on Google which will help the foreign companies to automate interaction with FTS at sale of electronic services in the territory of Russia.

This service will allow the nonresident companies accepting online payments in Russia to automate payment process of a digital tax (16.67%) in FTS. With the help API bank transfers the necessary amount of tax in FTS.

Service is expected the foreign companies selling in Russia electronic goods or services which get under a tax on Google: online advertizing, computer games, music, etc. They are assessed with the VAT in the amount of 16.67%, and the nonresident company is obliged to pay this amount.

Earlier process of interaction of nonresidents with FTS became complicated the fact that without the registered legal entity and the bank account in the Russian Federation, the foreign companies had to do SWIFT transfer on details tax. Because of incompatibility of a format of payment, the Russian banks were often forced to reject transfers from foreign accounts.