Eurasian Economic Union to reshape VAT on digital services

The Board of the Eurasian Economic Commission approved amendments to the Eurasian Economic Union Treaty on 12 January, in particular, the part that stipulates unified rules on collecting indirect taxes from digital services, the Eurasian Economic Commission press service told BelTA.

 

The document takes into account the international experience of the application of special tax rules to digital services, including the experience of the Republic of Belarus and the Russian Federation. The key novelty is that the VAT is to be paid where the digital service is consumed similarly to collecting the VAT on the basis of the country of destination. The Eurasian Economic Commission had drafted the amendments in association with authorized government agencies of the Eurasian Economic Union member states.

 

Member of the Board (Minister) for Economy and Financial Policy of the Eurasian Economic Commission Timur Zhaksylykov said: “In our day and age digital trade develops at a global pace. Due to the digitization of the economy, it is necessary to utilize modern taxation and tax administration procedures. The new procedures will enable equal and transparent conditions for taxing services both inside the Eurasian Economic Union and in trade with third countries. The new procedures are compliant with general international taxation trends.”

 

After the amendments come into force, all the Eurasian Economic Union member states will have to bring their national taxation laws on VAT on digital services into compliance with the Eurasian Economic Union legislation. Approved by the Board of the Eurasian Economic Commission, the amendments have been forwarded to the Eurasian Economic Union member states for intrastate approval.

 

Source: Belta

 

SUBSCRIBE TO GLOBAL VAT NEWSLETTER

Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!