Foreign companies providing electronic services in Kyrgyzstan to pay VAT

Bishkek, June 10, 2022. / Kabar /. According to the Tax Code of the Kyrgyz Republic, from January 1, 2022, all foreign companies that sell services in electronic form are required to pay value added tax (VAT) to the budget of the republic, the press service of the State Tax Service reported. The VAT rate is 12% on the amount of services provided. The State Tax Service launched the electronic service vat.salyk.kg for remote tax registration by foreign organizations. The so-called “Google Tax” refers to foreign organizations providing services electronically without using a domain name or IP address registered in the Kyrgyz Republic, the place of delivery of which is recognized as the territory of the Kyrgyz Republic. According to Art. 32 of the Tax Code of the Kyrgyz Republic, the provision of services in electronic form is recognized as entrepreneurial activity carried out automatically, to provide technical, organizational, informational, entertainment and other opportunities through the Internet through information and communication technologies, including: – provision in electronic form of 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; – providing and/or maintaining a commercial or personal presence on the Internet; – leasing of computing power; – provision of services for the administration of information systems, Internet resources through remote access; - providing access to search engines on the Internet; – carrying out activities of the seller and / or operator of the trading platform in accordance with the legislation of the Kyrgyz Republic on electronic commerce; – provision of services for the placement of proposals for the acquisition (sale) of goods (works, services), property rights on the Internet; - granting via the Internet the rights to use electronic books (publications) and other electronic publications, informational, educational materials, graphic images, musical works with or without text, audiovisual works, including by providing remote access to them for viewing or listening through the Internet. Services in electronic form do not include, in particular, the following operations: - the sale of goods (works, services), if when ordering via the Internet, the delivery of goods (performance of works, provision of services) is carried out without using the Internet; - implementation (transfer of rights to use) programs for electronic computers (including computer games), databases on tangible media; – provision of consulting services by e-mail; – provision of services for providing access to the Internet.