Главная Электронные услуги,оказываемые иностранными организациями физическим лицам Республики Беларусь/Online services provided by foreign companies to individuals of the Republic of Belarus Разъяснения МНС / Explanatory statement of the Ministry of Taxes and Duties НДС: иностранные организации, оказывающие услуги в электронной форме физическим лицам в Республике Беларусь (VAT: foreign companies supplying cross-border online digital services to private consumers in the Republic of Belarus) VAT: foreign companies supplying cross-border online digital services to private consumers in the Republic of Belarus

VAT: foreign companies supplying cross-border online digital services to private consumers in the Republic of Belarus

From 1 January of 2018 the provisions of the Tax Code of the Republic of Belarus (hereinafter – the Code) on VAT paid by foreign companies supplying cross-border online services to private consumers in the Republic of Belarus take effect.

Under these provisions, the territory of the Republic of Belarus is considered the place of supply and taxation of the online digital services if the customer (purchaser) of these services is a private consumer matching the criteria of the article 33, paragraph 4 of the Code.

For the purpose of tax payment a foreign company is required to register with tax authorities of the Republic of Belarus by filing the application in which it indicates information about itself and services provided or planned to be provided to Belarusian consumers. Then a foreign company will be assigned TIN and the personal tax account will be opened.

From 1 January of 2018 foreign companies supplying online digital services to private consumers in the Republic of Belarus are required:

- to register for tax purposes in the Republic of Belarus. The application need to be presented to the Ministry of Taxes and Duties inspection of Minsk. The receipt of applications begins from 1 January of 2018;

- to keep records of sales turnover of the digital services supplied to private consumers in the Republic of Belarus;

- to consider the 20% VAT rate during price determination for services supplying to private consumers in the Republic of Belarus;

- to file tax return recognizing sales turnover of the digital services supplied to private consumers in the Republic of Belarus subject to tax on a quarterly basis;

- to pay 20% VAT.

Tax object, base and due date.

Tax object is the sales revenue of the digital services supplied to private consumers in the Republic of Belarus.

Tax base for VAT is the value of services supplied including VAT.

Taxable period is a calendar quarter.

The tax return for VAT is to be filed electronically to the Ministry of Taxes and Duties inspection of Minsk via personal tax account in the form of electronic document or information containing data on the service sales turnover and the assessed amount of VAT payable.

Foreign companies considered as the payers of VAT on the supply of online digital services to private consumers in the Republic of Belarus:

- foreign companies supplying online digital services to private consumers in the Republic of Belarus on their own behalf (hereinafter – foreign company supplying online digital services to private consumers in the Republic of Belarus);

- foreign companies providing intermediary payment services to private consumers in the Republic of Belarus paying for online digital services supplied (hereinafter – foreign intermediate payer);

If foreign companies supply online digital services to private consumers (the Republic of Belarus is considered the place of supply) through the intermediary of the Belarusian companies, individual entrepreneurs, permanent establishment of foreign companies registered in the Belarusian tax authorities and carrying out payments of private consumers for services supplied on the basis of commission agreements, agency contracts and others similar civil contracts with foreign companies providing such services, VAT assessment and payment is made by intermediaries mentioned.

Registration of the foreign company supplying online digital services to private consumers in the Republic of Belarus, a foreign payment intermediary with tax authorities of the Republic of Belarus and cooperation on others issues

The Minsk city inspection of the Ministry of Taxes and Duties registers foreign companies on grounds of the application filed by:

- foreign companies supplying online digital services to private consumers in the Republic of Belarus;

- foreign intermediary payer.

The application filing options:

- paper application submitted by a person entitled to represent the foreign company in the Republic of Belarus;

- registered mail;

- electronic application digitally signed by a person entitled to represent the foreign company in the Republic of Belarus. The public key certificate should be issued by the republic certificate center of the State public key administration system of the Republic of Belarus.

Address of the Minsk city inspection of the Ministry of Taxes and Duties:

Myasnikova Str., 29, Minsk

220030 Republic of Belarus

e-mail: imns101@nalog.gov.by.

In addition to registration services, all the issues concerning VAT assessment and payment indicated by the mentioned foreign companies supplying online digital services to private consumers in the Republic of Belarus (tax return filing, VAT payment, advisory services, control activities) are within the competence of the Minsk city inspection of the Ministry of Taxes and Duties.

Cooperation procedures with the Ministry of Taxes and Duties inspection of Minsk:

Foreign companies cooperate with the Minsk city inspection of the Ministry of Taxes and Duties via the personal tax account.

Access to the personal tax account is provided by:

- the private key of electronic digital signature (the certificate of the correspondent public key is issued by the republic certificate center of the State public key administration system of the Republic of Belarus);

- account and password. The Ministry of Taxes and Duties of the Republic of Belarus defines account and password acquisition procedure;

Access to the personal tax account is provided to the foreign companies supplying digital services to private consumers in the Republic of Belarus from the date of registration with tax authorities and available within six month after its deregistration.

Terms and notions:

Online digital services – services supplied by the foreign company via the world area network Internet (hereinafter – the Internet) automatically with the use of information technologies, as well as with the participation of the intermediary;

The private consumer purchasing online digital services is considered purchasing online digital services in the Republic of Belarus if at least one of the conditions listed below fulfills:

- the place of the private consumer’s location is the Republic of Belarus;

- the registered office of the bank, where the private consumer’s account is opened for service payment, or the registered office of the electronic money system used for service payment is situated on the territory of the Republic of Belarus;

- the Internet Protocol address of the device used by a private consumer for the online digital services purchasing is registered in the Republic of Belarus (refers to address area of the Republic of Belarus);

- international country calling code used for service purchasing or payment belongs to the Republic of Belarus.

Online digital services are:

- granting the rights to use of software (including computer games), databases, their updates and functional optionality also via remote access, as well as electronic books and others electronic publications, information, educative documents, graphic images, pieces of music with the text or without the text, audiovisual products on the Internet also via remote access for screening and (or) listening on the Internet;

- advertising on the Internet also with the use of computer programs and databases operating on the Internet, as well as provision of space and time for advertising on the Internet;

- services concerning distribution of offers on acquisition (realization) of goods (works and services) and property rights on the Internet;

- services delivered automatically via the Internet after consumer data entering, automatic services on data search, its selection and query sorting and services on provision of the data to the users via information and telecommunication network (including real time market data of stock exchanges, real time automatic translation);

- search services and (or) services on provision of the information about potential buyers to the clients;

- services on provision via the Internet technical, organization and data capabilities with the use of information technologies and systems for contact establishment and trading between buyers and sellers (including the provision of the real time trading platform on the Internet where potential customers offer their prices via automated procedure and the parties negotiate about sale by automatically sending messages);

- maintaining and support of the presence on the Internet for personal purposes or for business activity, electronic resources support of the users (web sites and (or) web pages on the Internet), access maintaining for others users on the Internet to these electronic resources, provision of modification opportunities to the users and information system administration services;

- information processing and storage providing that a person presented this information has access to it via the Internet;

- real time provision of computing capacity for information distribution in the information system;

- supplying of domain names and hosting services;

- access provision to a search systems on the Internet;

- web site statistics on the Internet.

List of services that do not fall within the category of online digital services:

- realization of goods (works and services) if the delivery of goods (works performance and services supply) ordered via the Internet was carried out without the use of the Internet;

- realization (granting rights to use) of computer programs (including computer games), data bases on material media;

- provision of advisory services via electronic mail;

- supplying of services on provision of access to the Internet.