Belarus to apply VAT to e-services from 1 January 2018

30 June 2017

Belarus is set to extend its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies as of from 1 January 2018.

At present, foreign businesses providing digital services in Belarus do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Belarus resident providers, the Belarus government has now announced that VAT at 20% will be applied on these types of transactions from 1 January 2018.

This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

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