Under the Tax Code, all foreign companies that sell services in electronic form must pay value added tax to the state budget from January 1, 2022. The State Tax Service of Kyrgyzstan reminds.
The rate of VAT is 12 percent of the amount of services sold.
The State Tax Service launched an electronic service vat.salyk.kg for remote tax registration by foreign organizations.
Functionality of the service allows a foreign organization providing electronic services to undergo tax registration as a VAT taxpayer, receive a tax identification number and access to a personal account of the taxpayer.
The so-called " tax on Google" is imposed on foreign organizations providing services in electronic form without using a domain name or IP address registered in Kyrgyzstan, the place of supply of which is the territory of the Kyrgyz Republic.
Provision of a service is:
- Granting in electronic form of the rights to use software for any types of electronic devices;
- Provision of remote access, including via the Internet, to Internet resources and resources in other information and communication networks, including updates to them and additional functionality;
- Provision of advertising services on the Internet;
- Establishing and/or maintaining a commercial or personal presence on the Internet;
- Leasing of computing power;
- Provision of services for administration of information systems, Internet resources through remote access;
- Providing access to Internet search engines;
- Carrying out the activities of a seller and/or trading platform operator in accordance with the laws of Kyrgyzstan on electronic commerce;
- Provision of services for the placement of offers to purchase (sale) of goods (works, services), property rights on the Internet;
- Provision of rights to use electronic books (publications) and other electronic publications, information, educational materials, graphic images, musical works with or without text, audiovisual works, including by providing remote access to them for viewing or listening via the Internet.
Services in electronic form do not include:
- Sale of goods (works, services) if, when ordered through the Internet, delivery of goods (performance of works, provision of services) is carried out without using the Internet;
- Sale (transfer of rights to use) of programs for electronic computers (including computer games), databases on physical storage media;
- Provision of consulting services via e-mail;
- Provision of Internet access services.
