In Russia, companies selling paid digital products do not pay VAT. But in the case of shareware projects, 18% cannot be retained. The last six months Mail.ru I tried to stop this practice. But she didn’t succeed.
If you look into the Tax Code, then you can find Article 149 in it, according to which:
Not subject to taxation (exempt from taxation): exclusive rights to inventions, utility models, industrial designs, programs for electronic computers, databases, integrated circuit topologies, production secrets (know-how), as well as rights to use the specified results of intellectual activity on the basis of a license agreement.
You always (don’t) read the latter before installing a paid program. And when you BUY a digital version, the company selling it does not pay value-added tax to the state.
However, it so happened that this practice historically does not apply to free games in Russia. As we understand it, it is considered that a license agreement is not concluded when downloading a free program (although, of course, this is not always the case).
For this reason, IAPs within the framework of free in Russia have always been subject to VAT, although, theoretically, they should not have been.
Based on this assumption, the division Mail.ru The Group, which develops and operates games, filed a lawsuit against the Federal Tax Service in July, insisting that income from micropayments should not be subject to VAT.
In other words, it wanted to avoid paying taxes quite legally. It didn’t work out.
It turned out that, according to the Federal Tax Service:
Services for organizing the gameplay by providing the possibility of using additional game functionality for an additional fee are not subject to VAT exemption and their implementation is subject to VAT at the rate of 18% in accordance with the generally established procedure.
And on November 24, the Moscow Arbitration Court supported the tax.
Both the Federal Tax Service and the judges can be understood: otherwise, if they agreed with the arguments Mail.ru Of course, a large number of Russian IT companies would have been taxed.
On the other hand, according to the law, if a license agreement is concluded with the user (and it is usually concluded), VAT should not be paid.
Also on the topic:Mail.ru doesn’t want to pay taxes with IAP in free-2-play games
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