Mail.Ru Group saved 342 million rubles for non-payment of VAT

Mail.Ru Group received in the fourth quarter of 2016, approximately 342 million rubles due to the fact that revenue from online gaming companies are not subject to VAT, stated in the financial report of the holding company for the year 2016.

The company expects that the release of the online games from Russian VAT will continue to operate in the future. In 2017 the share of revenue that the company can get through this, will be about RUB 1 billion is projected in the message Mail.Ru Group.

By the end of 2016, total revenue Mail.Ru Group increased by 14.8% compared with the figure of 2015, to HPP, 42.75 billion rubles. the Net profit of the company increased by 18% and amounted to 11.6 billion rubles.

Part Mail.Ru Group “Mail.ru games” since 2013, tried to use the exemption for the payment of VAT, which was introduced in 2008 and is exempt from VAT companies that sell software and databases, and rights to use them under a license agreement. “E-mail.ru games” wanted to return the VAT that was accrued including user fees within the online games working on the model free-to-play: the user in the game plays for free, but takes on additional items within the game. The issue became a matter of dispute between “the Mail.ru games” and inspection FNS of Russia № 14 in Moscow. Moreover, the court supported the tax authorities in this dispute. How the company managed to obtain tax exemption in Mail.Ru have been unable to clarify.

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