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Bureaucratic mistake prevents Russia from collecting “tax on Google”

04.12.2019 0 Comments

Bureaucratic mistake prevents Russia from collecting “tax on Google”


The problem is being solved.

Russia is unable to collect “tax on Google” from foreign companies due to a bureaucratic error. Russian banks reject payments due to a lack of full details. At the same time, representatives of foreign companies declare that they complete the transfers in accordance with the approved instructions. This was announced today by the publication of RBC with reference to representatives of banks.


Bureaucratic mistake prevents Russia from collecting “tax on Google”

According to representatives of two international companies, they regularly paid the “Google tax” in Russia, but their payments were returned. Russian banks did not accept them due to incomplete details.

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The problem is that payment forms accepted abroad do not provide as many digits for the account number as in Russian forms. The forms simply do not have enough space to indicate the full account number, which leads to the rejection of payment acceptance by the banks of Russia.

The so-called “Google tax” has been introduced in Russia since 2017. He obliges foreign companies to pay tax on the sale of all digital services in Russia. The tax has to be paid to sellers of software, mobile applications, online cinemas, cloud storage, etc. In addition to Google, Apple is the largest tax payer.

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