“GOOGLE TAX” reached Tajikistan
Tajikistan has joined in the “Google tax” expansion across the post-Soviet countries.
Amendments to the Tax Code, which were signed to law last year on 17 December, Law No 1744, which make e-services subject to Tajikistan VAT, came into effect on 16 January 2021.
What e-services will be taxable by VAT?
- granting rights to use computer software and databases via the internet;
- providing advertising space via the internet;
- storage and processing of information online;
- provision of domain names, hosting and web-support services;
- search engine and statistics tracking services;
- administration of information systems, and others.
Online sale of goods, provided such goods are physically supplied, or the provision of consultancy services by e-mail, are not e-services for these purposes.
Who pays the tax?
VAT becomes now payable by foreign companies providing e-services (directly or via agents) to individuals in Tajikistan. They will have to do it by registering with the tax office in Tajikistan through opening their tax account (e-room via www.andoz.tj) and pay the tax directly via such facility.
E-services provided to individuals in Tajikistan will be subject to Tajikistan VAT if the individuals purchasing such e-services:
– live in Tajikistan; or
– have a bank account in Tajikistan which is used to process the payment for e-services; or
– have IP address registered in Tajikistan; or
– use international code for Tajikistan for payment processing purposes.
If e-services are provided to companies and individual entrepreneurs in Tajikistan then VAT is collected and paid by such persons on behalf of a foreign services provider.
VAT rate is 18%.
Registration, payment and reporting
Foreign e-services providers (tax agents) will need to apply for registration with the tax office in Tajikistan within 20 days of starting providing such services.
Tax period is calendar quarter. Foreign services providers (tax agents) will calculate and pay the tax within 10 days of the month following the reported quarter.
Tax office may request information about relevant money transfer operations from any bank or credit organization and the Communications Service in Tajikistan. The detailed procedure is to be established by the Tax Committee, National Bank and Communications Service.
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