Insight

"Google tax" expansion across the post-Soviet countries

"Google tax" expansion across the post-Soviet countries

Pavel Melnikov

Pavel Melnikov

November 16, 2020 07:32 AM

The so-called "Google tax" (extraterritorial online service VAT) is already operational in the EU, Russia, South Korea, Japan and other major markets, thus becoming increasingly common practice for the tax authorities globally to respond to challenges posed by digitalization.

"Google tax" expansion also continues across the post-Soviet countries. In June this year, the lower house of the Parliament of Kazakhstan (Majilis) approved in the first reading the amendments to the Tax Code introducing the "Google tax". The legislation is expected to take effect from January 2021.

Kazakhstan will, therefore, join a growing list of EMEA jurisdictions introducing this model of taxation of digital services which has been either adopted or discussed in the majority of post-Soviet countries.

Russia was a pioneer in introducing its "Google tax" in the post-Soviet space - for B2C online services it has been in effect since 2017 and was expanded to B2B services in 2019. In most other post-Soviet countries, where "Google tax" is either applicable or discussed, only B2C services are the target, while B2B services are either not taxed at all or administered by local companies playing the role of tax agents.

The "Google tax" expansion is important for a broad range of segments of the tech / ICT industry, including digital distribution platforms, social media, VoD and online content providers, online travel platforms, software vendors and O2O businesses like ride-hailing and food delivery.

We have prepared an outline of the current status of "Google tax" legislation across the post-Soviet jurisdictions and key parameters of taxation in each country, as well as a more detailed analysis here.

Related Articles

Breaking Up Is Hard to Do


by Douglas C. Ross

As antitrust prosecutors look at “Big Tech,” one size doesn’t fit all

Planning Your Digital Estate Plan

Current Status of Image Rights Structures in Spain


by Eduardo Montejo

Image Rights in Spain

Trending Articles

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

Could Reign Supreme End with the Queen?


by Sara Collin

Canada is revisiting the notion of abolishing the monarchy after Queen Elizabeth II’s passing, but many Canadians and lawmakers are questioning if Canada could, should and would follow through.

Teacup on saucer over image of Queen's eye

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

Announcing the 2023 The Best Lawyers in Canada Honorees


by Best Lawyers

The Best Lawyers in Canada™ is entering its 17th edition for 2023. We highlight the elite lawyers awarded this year.

Red map of Canada with white lines and dots

Wage and Overtime Laws for Truck Drivers


by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

The Upcycle Conundrum


by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

Announcing the 2022 Best Lawyers® in the United States


by Best Lawyers

The results include an elite field of top lawyers listed in the 28th Edition of The Best Lawyers in America® and in the 2nd Edition of Best Lawyers: Ones to Watch in America for 2022.

2022 Best Lawyers Listings for United States

Caffeine Overload and DUI Tests


by Daniel Taylor

While it might come as a surprise, the over-consumption of caffeine could trigger a false positive on a breathalyzer test.

Can Caffeine Cause You to Fail DUI Test?

Thirteen Years of Excellence


by Best Lawyers

For the 13th consecutive year, “Best Law Firms” has awarded the most elite and talented law firms across the country through a thorough and trusted data review process.

Red, white and blue pipes and writing on black background

IN PARTNERSHIP

2022: Another Banner Year


by John Fields

Block O’Toole & Murphy continues to secure some of New York’s highest results for personal injury matters.

Three men in business suits standing in office

Announcing The Best Lawyers in Australia™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Australia.

The Best Lawyers in Australia™ 2023

Announcing The Best Lawyers in Germany™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Germany.

Black, red and yellow stripes