Specifics of Taxation of Electronic Services in Belarus

1) What qualifies as electronic services for tax purposes?  Is there a list of such services?

"Electronically supplied services" means services provided through the Internet in an automated manner using information technologies, including with the involvement of a payment intermediary (Article 13 (2.31) of the Tax Code of the Republic of Belarus).  

Article 117(4) of the Tax Code contains an exhaustive list of services that qualify as electronically supplied services. Such services include, among others, the provision of rights to use software for any type of electronic device, advertising and marketing services provided via the Internet, collection and processing of website statistics and provision of the results of such processing, as well as automated distance learning delivered through information networks. 

For reference, Article 117(5) of the Tax Code contains an exhaustive list of services that do not qualify as electronically supplied services, including: 

• the sale of goods, works or services where the order is placed through the Internet but the delivery of goods, performance of works or provision of services is carried out without the use of the Internet;
• the sale (including the grant of rights to use) software (including computer games) and databases supplied on tangible media;
• consulting services provided by e-mail; and
• Internet access services.

2) Is a foreign company providing services electronically required to register for VAT purposes?

Registration for Belarusian VAT purposes is mandatory only where all of the following conditions are met:

• the supplier is a foreign legal entity or an individual entrepreneur;
• the supplier provides electronically supplied services falling within the statutory list;
• the recipients of such services are individuals located in Belarus, including individual entrepreneurs;
• the annual turnover from the supply of such services to customers in Belarus amounts to or exceeds EUR 10,000 (exclusive of VAT).

Once a foreign legal entity or individual entrepreneur has been registered with the Belarusian tax authorities, VAT becomes payable irrespective of the amount of turnover subsequently generated.

3) How is the place of supply of electronic services determined?

Belarus is deemed to be the place of supply of electronically supplied services if any of the following conditions is met:

• the customer's actual location or place of residence is in Belarus;
• the bank maintaining the account used for payment of the services is located in Belarus;
• the network (IP) address of the device to acquire the services is registered in Belarus (i.e., belongs to the Belarusian address space);
• the international country code of the telephone number, international postal code, or country code to purchase or pay for the services has been assigned to Belarus.

4) What VAT rates apply to electronic services?

The applicable VAT rate is 20%.

5) Are there any thresholds for mandatory tax registration?

As noted above, the registration threshold is EUR 10,000 (exclusive of VAT) of annual turnover derived from the supply of electronically supplied services to customers in Belarus.

6) What reporting and filing obligations apply to providers of electronic services?

The Tax Code does not require the filing of a standard VAT return by foreign suppliers of electronically supplied services. Instead, such suppliers are required to submit information containing details of the turnover generated from the supply of services and the amount of VAT payable.

Such information must be submitted on a quarterly basis no later than the 20th day of the month following the relevant reporting quarter. The filing deadlines for 2026 are as follows:

• Q1 2026 – no later than 22 April 2026;
• Q2 2026 – no later than 20 July 2026;
• Q3 2026 – no later than 20 October 2026;
• Q4 2026 – no later than 20 January 2027.

7) How are services supplied through marketplaces and platforms taxed?

Services provided by marketplaces are generally treated as electronically supplied services to the extent that they fall within the categories listed in Article 117(4) of the Tax Code. Accordingly, where the conditions described above are satisfied, marketplace operators and digital platforms are required to register with the Belarusian tax authorities and account for VAT in Belarus.

8) What are the risks and penalties for non-compliance with tax rules?

Where tax arrears exceeding 3,000 base units (approximately EUR 42,000, USD 49,000 or RUB 3.5 million) are identified, the Minsk City Inspectorate of the Ministry for Taxes and Duties must, no later than two business days following the date of identification, issue a notice of violation of tax legislation.

If, within 90 days, the taxpayer fails to provide explanations or settle the outstanding tax liability, a decision may be issued to restrict access to the relevant Internet resource.

A current list of organisations whose Internet resources are subject to access restrictions is publicly maintained by the Belarusian authorities.

Author: Polina Sachava