Frequently asked questions about Belarus VAT

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Belarus. VAT is a consumption tax because it is ultimately borne by the final consumer.

Who must pay VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.

Where a foreign organization (such as Zoom) provides online digital services to individuals, including individual entrepreneurs in Belarus, there is a requirement to collect and remit VAT on the supplies. The responsibility to collect and remit VAT depends on whether the Belarusian customer is a business customer (i.e., a legal entity) or an individual/individual entrepreneur.

If you are a business customer, you should provide Zoom with your Tax Identification Number (TIN). If your TIN is valid and indicates that you are a business customer, then no VAT will be charged on the supplies made to you by Zoom; however, you may be required to self-assess for the VAT under the “reverse charge” mechanism. If you are not a business customer or if you are a business but do not provide a valid TIN, VAT will be charged on the supplies made to you.

Why am I being charged VAT?

Zoom is registered for VAT in Belarus as a non-resident supplier of digital services. As such, Zoom is required to collect and remit VAT on supplies made to non-business customers in Belarus.

What is a Tax Identification Number (TIN)?

A Tax Identification Number (TIN) is a tax number issued to persons in Belarus by the tax authorities. It is a 9 digit number.

How do I enter my TIN?

To provide your TIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.

Zoom performs periodic validation checks of customer TINs to ensure that the TIN remains valid and indicates that a customer is a business customer. If, during these periodic validations, it is identified that your TIN is no longer valid or no longer indicates that you are a business customer, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid TIN indicating that you are a business customer is provided.

You are required to notify us if there is a change to your TIN / business status.

Does Zoom have a TIN?

Yes, Zoom’s TIN will be shown on the invoice it issues to you.

How is Zoom determining which customers VAT applies to?

If a customer's Sold To location is in Belarus and the customer has not provided a valid TIN which indicates that you are a business customer for Belarusian tax purposes, Zoom will charge Belarusian VAT on its invoices.

This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.

It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.

What happens if I have a TIN but I am not a business customer for Belarusian tax purposes, i.e. individual entrepreneur?

If a customer in Belarus does not provide a TIN or has a TIN but is not a business customer (i.e., a legal entity) for Belarusian tax purposes, Zoom will charge VAT on the supplies made to you.

Is there a minimum threshold purchase amount before VAT is applied?

No, where a customer in Belarus has not provided a valid TIN that indicates that they are a business customer for Belarusian tax purposes, Zoom will charge VAT on all supplies made to you.

Are there any VAT obligations for me as a customer?

If you have provided a valid TIN to Zoom which indicates that you are a business customer for Belarusian tax purposes, no VAT will be charged on the supplies made to you. However, you may be required to report the purchase and self-assess for the VAT under the “reverse charge” mechanism in your VAT return. There is no VAT obligation for a customer who is not a business customer for Belarusian tax purposes, i.e. individuals or individual entrepreneurs.

What if I have a TIN and forget to enter it or forget to declare that I am a business customer?

The TIN may be entered at any time. If a valid TIN which indicates that you are a business customer for Belarusian tax purposes is entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no TIN is entered at the time the next invoice is issued, or if a TIN is provided but does not correspond to a legal entity for Belarusian tax purposes, VAT will be charged until a valid TIN which indicates that you are a business customer for Belarusian tax purposes is provided.

If a valid TIN is entered which indicates that you are a business customer for Belarusian tax purposes, and VAT has previously been charged on the invoices issued to you, then upon request by you, Zoom may refund for any VAT included on invoices issued in the thirty days prior to a valid TIN being provided. However, VAT will not be refunded on any invoices issued outside of this thirty-day period.

Decision tree – My “Sold To” address is Belarus; will I be charged VAT?

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice but as a general overview of relevant VAT rules in Belarus. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.