Currently, a campaign to declare the income of international companies that supply electronic services is underway in Ukraine. This year, the company that owns the PornHub platform was added to the list of such technological giants as Google and META, which are taxpayers in Ukraine.
Now the taxes received from the profits after Ukrainian users watch advertisements and videos on the portnosite will go to the state budget. Also, a taxpayer in Ukraine is the Only Fans platform, which serves for paid exchange of spicy videos and photos.
Legal conflict with porn sites
It is interesting that the operation of such providers of electronic services in our country is not entirely legal, as it contradicts the legislation on the distribution of pornography. There are known rare cases when the police opened proceedings against Ukrainian women who work for Only Fans. Women were repeatedly fined for such activities.
It is interesting that at the beginning of the full-scale war, some of the Ukrainian girls from Only Fans worked for donations in the Armed Forces. Then they initiated the creation of the platform “TERONLIFANS”, the purpose of which is to sell intimate photos to finance the defense of the country. Since 2022, the girls have already managed to collect 31.5 million hryvnias.
If PornHub has just now registered as a VAT payer, Only Fans has been paying fees to the Ukrainian budget since last year. In the first quarter of 2024, tax revenues from the platform’s activities amounted to $700,000.
What other international companies pay taxes in Ukraine?
Over the past year, the number of international digital companies operating on the Ukrainian market and paying fees to the state budget has increased.
“The declaration campaign by non-residents carrying out operations for the supply of electronic services to individuals is ongoing. In the first quarter of 2024, we have plus 17 new taxpayers. To date, 78 (out of 105) taxpayers have declared their tax liabilities in the amount of 2.4 billion hryvnias (25.5 million euros and 32.6 million dollars). The largest taxpayers of VAT on digital services declared and paid more than 2 billion hryvnias before the deadline. These are: Google, Apple, META platforms and Valve corporation,” he said Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy Danilo Getmancev.
