social network

Facebook will start to charge VAT at 20% for the purchase of advertising for Russian users from 2019

A customer who paid $ 100 will pay $ 120.

  • Facebook warned customers that from January 2019, the purchase of advertising for Russian users will be subject to value added tax (VAT) of 20%. This is stated in a Facebook statement , the Inc. publication first noticed it ;
  • Innovation will affect all advertisers for whom Russia is listed as the country of the company. VAT will have to be paid regardless of whether it is commercial or personal publication;
  • “VAT is added to the total amount of funds debited, so you will not reach the billing threshold faster, but they will write off the amount exceeding the billing threshold,” explained Facebook;
  • From 2019 in Russia they will start charging Google a tax differently: foreign companies must register and pay VAT on digital purchases themselves. Previously, this was done by customers of advertising and services. Entrepreneurs expressed dissatisfaction with these innovations;
  • The Google Tax Act has been in effect since 2017. It obliges foreign IT companies to pay VAT on sales of games, music, books, software and other digital content in Russia.

 

Back to top button
Close
Close