Russia slaps Facebook with ‘Google Tax’

‘Social media giant Facebook has joined the list of IT firms registered with Russia’s Federal Tax Service as a foreign company selling electronic content in Russia.
Beginning April 25, the California-based company will start paying 18 percent value added tax (VAT), known as the ‘Google tax’ in Russia, reports business daily Vedomosti.
Over a hundred foreign corporations have already registered in Russia. They include Google, Apple, Microsoft, LinkedIn, Netflix, Bloomberg, the Financial Times, and Turkish payment service provider Payby.me. English professional football club Chelsea, also had to register due to video content distribution.
Roughly half of the registered firms sell software and computer games with 30 percent of corporations distributing music content as well as movies and books, according to an official as quoted by the daily.’
Read more: Russia slaps Facebook with ‘Google Tax’