Google Tax will be imposed on many social sites
Now Facebook will have to pay Google Tax at least 18% value added tax on various foreign companies. To sell the electronic content, the tax has mainly imposed in Russia but soon will be implemented in many other countries. The US social media platform have joined Microsoft, Netflix, Apple, and Bloomberg while many other hundreds of foreign companies have registered to pay for the Value added tax with the Russia Federal Tax service as told by media.
The Google tax is approved by the Russian parliament last summer and has come into effect on January 1. It is implemented on all companies that sell videos, music, video games and other related domain names even online. According to Russian authorities, that Google tax is similar to VATs which is paid by the purveyors of online content in European Union Japan and even South Korea.
The companies will make the first quarterly payment until April 25. The companies who have registered to pay the Google tax will be providing tax up to 10 billion rubles to the state budget.
Most of the companies are trying their best to adjust with the tax because of the increasing prices of the products they sell online and the cost of the transferring to the consumers. For example, Google increased the cost of Google Drive service at least 18% last year.
While Apple has not raised its prices in Russia. Similarly, Wargaming, the famous video game company have said that the users will not be able to bear the burden of new tax. Even Uber services have also asked its registered drivers to pay tax individually currently in Russia. Most of the drivers have quit in the protest while company reversed policy by saying that it will pay the tax collectively.
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