What the experts said happened. The value added tax in respect of turnover from the sale on Belarusian territory of telecommunication services provided to subscribers, increased to 25%. According to BelTA, such a norm is contained in the decree of March 25, 2016 No. 111 “On taxation and the approval of the budget of the subsistence minimum”.
Finance Minister Vladimir Amarin did not rule out that this measure will ultimately affect the cost to consumers of mobile services or Internet connections. “Yes, it will increase the cost of these services, but you can adjust the volume of consumption”, — BelTA quotes the Minister. The decree provides that the regulation shall enter into force from 1 April 2016.
Decree No. 111 also provides that the value added tax at the rate of 20% is levied on sale turnover in Belarus transport services of passengers urban and suburban road transport in the regular message; urban electric transport and underground railway; inland water transportation by commuter rail; rail transport on urban and regional lines.
Amarin has stated that this measure will not entail the increase of tariffs for these services. “There will be a reduction and cost optimization of transport organizations”, — he noted.
The relevant provision comes into force after the official publication of the decree and shall apply to relations arising from 1 March 2016. The Ordinance also provides that the reporting period for VAT payers that provide these services from 1 April 2016 is a calendar month.
