Digest Finance

Google Tax: How to Avoid Stepping Back in the Near Future?

Vol. 23, Iss. 4, DECEMBER 2018

PDF  Article PDF Version

Received: 30 July 2018

Received in revised form: 10 August 2018

Accepted: 17 August 2018

Available online: 24 December 2018


JEL Classification: Н22, H25

Pages: 411–418


Tikhonova A.V. Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Subject This article discusses the issues related to tax changes in the taxation of foreign organizations providing electronic services (e-services) in the territory of Russia. Such changes are expected in 2019.
Objectives The article aims to identify problems in the practice of e-service VAT taxation and tax management, as well as develop recommendations for certain improvements.
Methods For the study, I used the methods of economic analysis, induction, deduction, and comparison.
Results The article reveals the technical (determination of the e-service location) and organizational (unavailability of property in the territory of Russia) problems of effective tax administration. It proposes to use the best foreign practices (the EU case) as part of the VAT reverse charge mechanism.
Conclusions The general rules of e-services VAT taxation will change in the B2B segment from January 1, 2019. The article concludes that the effective mechanism of implementation of e-service VAT taxation is hampered by significant legislative and technical problems. Tax changes introduced from January 1, 2019 can further exacerbate these problems.

Keywords: VAT, Google tax, tax administration, electronic services, Internet


  1. Milogolov N.S., Berberov A.B. [An analysis of the effectiveness of VAT tax benefit for IT companies]. Nalogi i nalogooblozhenie = Taxes and Taxation, 2017, no. 11, pp. 18–26. (In Russ.)
  2. Akhmadeev R.G., Bykanova O.A., Malakhova L.I. [Digital content market: new rules of payment for the VAT]. Azimut nauchnykh issledovanii: ekonomika i upravlenie = ASR: Economics and Management, 2017, vol. 6, no. 4, pp. 43–46. URL: Link (In Russ.)
  3. Bozov A.A. [Taxation of VAT of electronic services (tax on Google)]. Vestnik professional'nogo bukhgaltera = The Messenger of Professional Accountants, 2017, no. 1-3, pp. 83–88. (In Russ.)
  4. Em A.V. [The main directions of improving the system of Value Added Tax collection when foreign entities provide services on-line]. Aktual'nye problemy rossiiskogo prava, 2018, no. 3, pp. 77–86. URL: Link (In Russ.)
  5. Sotnikova L.V. [Electronic services: taxation on value added]. Bukhuchet v stroitel'nykh organizatsiyakh = Accounting in Construction Companies, 2017, no. 4, pp. 57–63. (In Russ.)
  6. Makarov V.S., Cherneva Yu.A., Kazakova N.A. Nalog na Google kak istochnik privlecheniya dopolnitel'nykh denezhnykh sredstv v byudzhet. V kn.: Finansovye strategii i modeli ekonomicheskogo rosta Rossii: problemy i resheniya. Sb. nauch. statei [Tax on Google as a source of attracting additional funds to the budget. In: Financial strategies and models of Russia's economic growth: problems and solutions. A collection of scientific articles]. Moscow, Auditor Publ., 2017, pp. 103–112. URL: Link
  7. Sennaya I.K. [Improvement of taxation of e-commerce as the most perspective sphere of the Russian economy]. Nauchno-prakticheskie issledovaniya, 2017, no. 2, pp. 236–239. (In Russ.) URL: Link
  8. Borisichev A.A., Korshakova D.M. [Google Tax: controversies in practice]. Nalogoved, 2017, no. 6, pp. 38–47. (In Russ.)
  9. Shamsutdinova V.Sh. [Features of calculation and collection of VAT on the sale of foreign companies of electronic services to Russian consumers]. Ekonomika i menedzhment innovatsionnykh tekhnologii, 2017, no. 2, pp. 120–122. (In Russ.) URL: Link
  10. Kabanov I.P. [Models of tax and other payments collection in cross-border electronic commerce]. Rossiiskii vneshneekonomicheskii vestnik = Russian Foreign Economic Journal, 2017, no. 10, pp. 56–68. URL: Link (In Russ.)
  11. Glebova O.P. [Tax on Google and the responsibilities of Russian people]. Nalogovaya politika i praktika = Tax Policy and Practice, 2017, no. 7, pp. 44–48. (In Russ.)
  12. Milogolov N.S. [Problems and prospects of VAT taxation for international supply of digital services]. Nalogovaya politika i praktika = Tax Policy and Practice, 2014, no. 5, pp. 74–79. (In Russ.)
  13. Mitin D.A. [Features of tax administration of electronic commerce in the Russian Federation]. Upravlenie ekonomicheskimi sistemami: elektronnyi nauchnyi zhurnal, 2018, no. 5. (In Russ.)
  14. Milogolov N.S. [Administration of VAT in the field of e-commerce: the experience of EU countries]. Vestnik AKSOR = AKSOR Bulletin, 2015, no. 3, pp. 31–33. (In Russ.)
  15. Astakhov K.G. [OECD Report on Effective VAT Collection: Perspectives of application in Russia]. Nalogoved, 2017, no. 12, pp. 44–50. (In Russ.)
  16. Sokolovskaya E.V. [Indirect taxation of cross-border transactions in electronic commerce]. Ekonomika i upravlenie = Economics and Management, 2017, no. 8, pp. 37–47. (In Russ.).

View all articles of issue


ISSN 2311-9438 (Online)
ISSN 2073-8005 (Print)

Journal current issue

Vol. 23, Iss. 4
December 2018