A new tax mechanism will be introduced for sellers on the OLX, Prom and Rozetka platforms. The Cabinet of Ministers of Ukraine adopted the draft law “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine regarding the implementation of international automatic exchange of information on income received through digital platforms.” About this reported representative of the government in the parliament, Taras Melnychuk.
According to the draft law, operators of digital platforms are recognized as tax agents. They will automatically withhold taxes from users who receive income from the sale of goods or the provision of services through these services. The tax rate will be 5%, to which will be added another 5% military levy. The innovation will apply to both Ukrainian and foreign platforms, if the income is received by Ukrainian residents.
The obligation to pay tax will apply to the following types of activities through the digital platform for remuneration:
- rental of real estate (residential, non-residential, parking spaces, etc.);
- personal services;
- sale of goods;
- rental of vehicles.
An active seller for tax purposes will be considered a person who, during the reporting period, carried out at least one operation for which he received or was charged a fee. The tax authority will have the right to obtain information from the banks about the transactions in the current accounts of such sellers in accordance with the legislation on the disclosure of bank secrecy.
Individuals who sell goods or services through digital platforms are required to open a separate bank account to receive payments if they have made more than three sales during the year or the volume of transactions has exceeded 2,000 euros.
