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DigitalOcean has introduced a 20% tax for citizens of the Russian Federation, what should I do?
"With data centers in Amsterdam, Frankfurt, and London supporting thousands of users and businesses, we're proud of our presence in Europe. Effective January 1, 2019, the Russian Federation VAT (Value Added Tax) law has been amended to require non -resident electronic service providers to declare and pay VAT. As such, starting on January 1, 2019, DigitalOcean will begin charging VAT to all customers located in Russia at the
standard rate of 20%.
If you are a customer of DigitalOcean located in Russia, you do not need to take any action at this time. On January 1, 2019, we will begin to include a VAT charge of 20%, based on the address associated with your account. Your February 1, 2019 monthly invoice for January charges will reflect this.
" 20 percent is quite a significant amount in terms of money.Who thinks what?
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The tax was introduced by no means by DO, but by our legislators.
And more or less large organizations providing services to the Russians will comply with this law, why shouldn't they actually do it? You won't have to come up with anything special - in Europe, the same tax has been levied for a long time according to this scheme, so billing already knows how to do it. So I think that migration will not help, or help not for long.
This is not for Russia.
For Europe, to which the Russian Federation belongs, this is an ordinary situation. Until now, we could get services cheaper than Europeans.
Europeans pay the same tax - up to 25% depending on the country.
And not only them.
https://en.wikipedia.org/wiki/Value-added_tax#Arou...
In past years, the Russian Federation did not require this at all. This year, the buyer of the service had to pay for it himself (you didn’t, of course, that’s why it cost you 20% less). Well, since 2019, the obligation to pay tax was imputed to suppliers.
In theory, any Internet service should now charge us more for these 20%. In fact, only the largest ones will do it.
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