VAT in Belarus guide

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Belarusian VAT for digital service providers

From 1 January 2018 non-resident providers of B2C electronic/digital services and Goods in Belarus had to start charging local VAT on such supplies. There is no annual sales threshold for VAT purposes applied to non-resident B2C suppliers, therefore, VAT shall be charged from the very first sale. Non-resident providers of B2C digital services and goods are obliged to register for VAT with the Ministry of Taxes and Duties of Belarus.

List of digital services that are the subject of Belarusian VAT

Belarusian law includes the following services within the definition of digital services:

Licensing of software;
Online computer games;
Streaming or down load media;
E-books;
Database access;
Internet advertising services;
Real time trading platforms;
Data storage and processing;
Domain name provision and hosting.

VAT rates

In Belarus, the following VAT rates are applied:

Standard rate: 20%;
Reduced rate: 10%;
Increased rate: 25%;
Zero rate: 0%

Late – registration penalties

Belarusian administrative law provides for several types of fines in the following amounts for tax registration violations:

Delay in tax registration: penalty of not more than five basic units (one basic unit = BYN24.5).
Non-registration: penalty of not more than 20 basic units. The amount of the penalty depends on the duration of the delay in tax registration. For legal entities, the penalty equals 20% of the amount of income generated during the period of unregistered business activity.