“Google Tax” brought 3.5 billion hryvnias to the Ukrainian budget in the first quarter of 2025
The first quarter of 2025 turned out to be successful for revenues to the state budget from the so-called “Google tax”. International companies providing electronic services to Ukrainian users paid value added tax in the amount of 3.5 billion hryvnias. In conversion, this amounts to 39.6 million euros and 43.4 million US dollars, informs Head of the State Tax Service Ruslan Kravchenko.
Compared to the first quarter of 2024, revenues increased significantly: by €9.5 million and $8.9 million, respectively, which indicates the constant growth dynamics of this source of budget replenishment. In the reporting period, 121 non-resident companies submitted reports. The number of registered VAT payers among non-residents also continues to grow. Over the course of three months, 26 new companies were added to the register, bringing the total number of such payers to 136.
The largest VAT payers in this segment traditionally include world technology leaders: Apple, Google, Valve, Meta, Sony, Etsy, Netflix, Wargaming, Bolt, OpenAI and eBay. It is these companies that provide the bulk of revenues from electronic services.
We will remind that according to the results of 2024, the volume of revenues from the “Google tax” reached a record mark – 11.2 billion hryvnias. As the Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Danylo Hetmantsev noted, the forecasts regarding the ineffectiveness of this tax did not come true. In particular, fears that non-residents would not register and leave the Ukrainian market were not confirmed. On the contrary, the volume of income is growing steadily from year to year.
