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Large foreign companies ignore "Google tax" payment requirement

A number of foreign companies ignored the requirement of the Tax Service to pay VAT for electronic services in Kyrgyzstan. The Tax Service announced.

The service sent official emails to a number of major organizations throughout the year, including Alibaba, Meta, Netflix, Google, Amazon, and others. The tax authorities recommended them to undergo tax registration procedure and become a VAT payer for the sale of services in the Kyrgyz Republic in electronic form. They ignored the appeals.

To date, 18 foreign companies that provide services in electronic form in Kyrgyzstan have undergone remote registration at www.vat.salyk.kg service as VAT payers, including those registered in the United Arab Emirates (4), the Netherlands (3), the USA (2), Great Britain (2), Russia (2), Ireland (1), Armenia (1), Kazakhstan (1), Latvia (1), Cyprus (1).

«The so-called «Google tax» applies to foreign organizations that provide services in electronic form without using a domain name or IP address registered in the Kyrgyz Republic, the place of delivery of which is the territory of the country. The VAT rate is 12 percent of the amount of services sold,» the Tax Service said.

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