Flappy Bird author must pay VAT

2 Feb No Comments
In 2015, the father of the game Flappy has filed and payed the tax authorities 1,4 billion of personal income tax. On April 11, Deputy General Director of Tax Reform Department Nguyen Quang Tien said that the General Department of Taxation has identified Nguyen Ha Dong (father of Flappy Bird game) ) are liable to pay value added tax (VAT) and personal income tax calculated on the proceeds from services associated with video games. According to the General Department of Taxation, the electronic games that Nguyen Ha Dong created, provided on Google and Apple’s free app marketplace, do not transfer all ownership of their video games to Google or Apple companies. The provision of electronic games is the creation of space and time advertising in the network environment so that organizations and individuals wishing to advertise through the advertising service provider are Google and Apple. product advertising on this game. Thus, Nguyen Ha Dong’s income is not from the provision of electronic games (free of charge) and is not the revenue from the advertising business conducted by Google and Apple. However, the income of Nguyen Ha Dong is from the advertising service provider using video games of Nguyen Ha Dong as a “sign” for advertising business. As a result, Google or Apple advertising services are implemented in connection with the video game and the income received by Nguyen Ha Dong is divided in accordance with the agreement with the advertising service provider from the attached services. with the goods is electronic games. The goods here are not ordinary goods under the concept of Commercial Law, in which goods are produced in accordance with the Law on Information Technology. From the actual operation and determination of income received by Nguyen Ha Dong, the General Department of Taxation temporarily determined that Mr. Nguyen Ha Dong had the obligation to pay 2 kinds of tax, namely VAT and PIT calculated on the proceeds from operation Business services with goods. “The Hanoi Tax Department has instructed Mr. Nguyen Ha Dong to implement PIT finalization in 2015” – said Nguyen Quang Tien. It is known that in 2015, the father of the game Flappy has filed and filed with the tax authorities 1,4 billion of personal income tax. However, according to Nguyen Quang Tien, many types of business and service provision are not included in the regulations on tax administration of state agencies, so the examination and retrospective collection of taxes in these types have many difficult. For example, the case of father game Flappy Bird – Nguyen Ha Dong is notable when achieved huge revenue from game advertising. Therefore, in order to clarify the actual amount received by Nguyen Ha Dong, early in 2014, the General Department of Taxation conducted a check on the income of his father Flappy Bird. According to Bao Hai Quan