Ukraine

Ukraine plans to introduce taxation of income from digital platforms

Ukraine plans to introduce taxes on income from digital platforms such as OLX, Prom, ROZETKA and others. This can become a reality thanks to the draft law of the Ministry of Finance of Ukraine, which provides for the annual transfer of information about all sellers who have carried out at least one transaction during the year to the State Tax Service. About this reported People’s Deputy Nina Yuzhanina.

“Also, this draft law provides that such digital platforms will be tax agents and must withhold personal income tax and military tax from the income received (by sellers – natural persons). More details about the draft law later, when it will be registered in the Verkhovna Rada.” – says the message.

Yuzhanina drew attention to the fact that the Ministry of Finance implements the provisions of European documents very selectively. In particular, the requirements of Council Directive (EU) 2021/514 of March 22, 2021 (DAC7), which provides for the establishment of thresholds for the transfer of information to tax authorities, were ignored.

She noted that in the EU, tax authorities receive data only on those sellers who either made 30 or more sales during the year, or received an income of more than 2,000 euros.

“In our country, according to the Ministry of Finance, information on all transactions without exception should be transmitted and all funds of an individual starting from 1 hryvnia should be taxed. And it was this position of the Ministry of Finance that was voiced at the working group on the discussion of this draft law, and other things (which I don’t even want to write about) were also voiced at it. People have few problems, so there will be more.”Yuzhanina noted.

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We will remind that on April 8, the State Tax Service announced that it will not apply fines to citizens who sell personal items on Internet platforms, as such activity is not a reason for financial or administrative responsibility in accordance with current legislation. At the same time, the systematic sale of the same product has signs of economic activity.

 

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