Lithuanian residents‘ spending on computer games increases

The State Tax Inspectorate (hereinafter referred to as the VMI) informs that the residents of Lithuania spend more money playing video games and using digital services of companies operating in the European Union. Analysis of the data of MOSS (Mini One Stop Shop) scheme that has been functioning since 2015 revealed that more than 7 million euros of value added tax (hereinafter referred to as VAT) payable to Lithuania was declared for 2018 by the participants of MOSS according to a press release from the VMI.

"It is observed four years after the introduction of MOSS system that the residents of Lithuania are increasingly using electronic, telecommunications and broadcasting services provided by EU companies, and the annually increasing amounts of VAT also return to Lithuania from the gaming industry giants that developed such computer games as "World of Warcraft", "Fortnite", "World of Tanks" or "League of Legends", - says Rolandas Puncevičius, the Head of the Division of Business in cyberspace and by electronic means of the Control Department of the VMI, and recalls that MOSS system enables the persons who provide e-services to register themselves as VAT payers only in one Member State of the European Union, and to deal with VAT-related matters through the Member State in which the person is registered as a VAT payer, i.e. not pay VAT in the countries where the services are provided.

The VMI also notes that the analysis of MOSS data shows that amounts spent by Lithuanians on playing video games also increase. Based on provisional data, the residents of Lithuania spent more than 1,4 million euros in 2018 on taxable digital goods and service of such companies as "Sony", "Twitch", "Ubisoft", "Blizzard", "GOGׅ" and "Epic Games". Compared to 2017, the taxable sales of these companies nearly doubled (the total sales volume of taxable digital goods and services in 2017 amounted to more than 800 thousand euros).

INFORMATION ON THE PARTICIPANTS OF MOSS:

• Ubisoft EMEA (France) declared in MOSS system a due amount of VAT of 14,0 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018.

• Blizzard Entertainment SAS (France) declared in MOSS system a due amount of VAT of 373,3 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018, and the highest amount of 121,6 thousand euros for 2017.

• RIOT GAMES LIMITED (Riot Games Inc) declared in MOSS system a due amount of VAT of 426 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018.

• SONY COMPUTER ENTERTAINMENT EUROPE LTD declared in MOSS system a due amount of VAT of 36,8 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018.

• Epic Games International, S.à r.l. declared in MOSS system a due amount of VAT of 88,6 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018, of them – 84,2 thousand euros for 2018.

• Twitch Interactive (US), registered as GB in MOSS, declared in MOSS system a due amount of VAT of 12,8 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018.

• Adobe Systems Software Ireland Limited declared in MOSS system a due amount of VAT of 182,8 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018.

• Netflix International B.V. The Netherlands declared in MOSS system a due amount of VAT of 311 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018, of them – 184 thousand euros for 2018.

• The taxpayers registered in MOSS system by Amazon group declared a due amount of VAT of 1479 thousand euros for the sales of services to Lithuanian end users for the period 2015-2018

(Amazon Web Services Inc for 216,1 thousand euros, Amazon Digital Services, Inc. for 130,1 thousand euros, Amazon Services LLC for 510,7 thousand euros, Amazon Services Europe, Sàrl for 518,6 thousand euros, etc.).