Tag Archives: tax code

VAT imposition on the provision of services in electronic form by foreign IT-organizations starting from 2017

The Federal law № 244-FZ “On amending parts one and two of the Tax code of the Russian Federation” (hereinafter – the Law) came into force on 01 January 2017. The Law provides that starting from this date provision of services in electronic form by foreign IT-organizations to Russian individuals and legal entities in Russia is subject to VAT taxation.

Under clause 1 art. 174.2 of the Russian Tax code as amended by the Law the following services are subject to the payment of VAT inter alia:
  • granting of rights to use computer programs (including computer games), databases via the Internet;
  • provision of advertising services on the Internet;
  • services on placing offers for purchase (disposal) of goods (works, services), property rights on the Internet;
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Multistate Tax Update — January 14, 2016

Michigan: Year-end legislation modernizes tax code to equalize treatment of technology and manufacturing

At the end of 2015, Gov. Rick Snyder announced his approval of legislation that he said would “modernize the structure of Michigan’s tax code to ensure treatment of data center inputs more closely aligns with treatment of manufacturing inputs and tax laws in other states.” There are approximately 40 data centers currently located in Michigan that would benefit from SB 616 and SB 617; effective Jan. 1, 2016, they exempt data center equipment from the state’s sales and use taxes, respectively.

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