Belarus plans to start charging VAT on purchases from foreign Internet shops from 1 July 2022

<p> MINSK, Oct 11 - PrimePress. Belarus plans to start charging VAT on goods purchased from foreign Internet shops from 1 July 2022, in accordance with the bill amending the Tax Code. </p> <p>   </p> <p> A message to this effect has been posted on the website of the Ministry of Finance of Belarus. </p> <p>   </p> <p> The bill provides for introducing the obligation for foreign entities and foreign individual entrepreneurs to calculate and pay VAT on goods sold online. The move which aims to equalize the conditions of VAT taxation of goods sold in Belarus, the Ministry of Finance explained. </p> <p>   </p> <p> “Currently Belarusian shops pay VAT when selling goods, while foreign sellers are not subject to VAT when selling goods online. The Ministry of Finance points out that this regulation will come into force on 1 July 2022. That will allow the tax authorities to inform taxpayers in advance about the need to register them with the tax authorities and about the procedure of VAT calculation and payment to the budget.” </p> <p>   </p> <p> According to the Ministry of Finance, the move to start charging VAT on goods sold online from 1 July 2022 will bring additional revenues to the budget in 2022 in the amount of Br40 million ($16.145 million at the rate of National Bank of Belarus). </p> <p>   </p> <p> The proposed mechanism of VAT collection, as well as the tax rates, have not been provided yet. The basic VAT rate in Belarus is 20%. </p> <p>   </p> <p> Earlier, on 10 October, Finance Minister Yury Seliverstov explained in an interview to ONT TV channel: “When buying goods from foreign online shops, citizens (of Belarus – editor’s note) transfer money to the owner of this shop, which is registered as a business entity in another country, and taxes are paid to the budget of that country”. End </p>

2021-10-12

Primepress