Ukraine’s Parliamentary Committee on Tax Policy has approved Bill No. 14025, which would introduce automatic taxation of income earned through digital platforms, including general classified site OLX.ua, marketplaces Prom.ua, Rozetka.ua, LUN.ua, services vertical Kabanchik.ua, and online taxi services.
The legislation aims to integrate Ukraine into international tax transparency systems through automatic information exchange on platform-generated income.
The bill builds on earlier government proposals from April that introduced a 10% tax rate (5% personal income tax plus 5% military levy) for digital platform earnings. While the committee increased the tax-free threshold to €2,000 ($2,325) annually and made the law’s enforcement conditional on signing international agreements, critics warn of practical issues.
MP Nina Yuzhankina pointed out that platforms would act as tax agents, automatically withholding taxes even on one-time sales of used items. Unlike EU countries where the €2,000 limit applies per platform, Ukraine would aggregate income across all platforms, she said in a report for FaceNews.ua.
She also added in the report that the refund process raises concerns as taxes would be deducted first, requiring sellers to file through electronic tax cabinets to potentially recover payments if their annual sales fall below the threshold.
Additionally, Yuzhankina argues that the implementation ignores EU directive nuances, lacks transitional periods, and doesn’t account for losses on resold items.
The new tax regime will apply to real estate leasing, personal services, sale of goods, and vehicle rentals. The bill now advances to full parliamentary consideration.
