On March 20, the Ministry of Finance of Ukraine published a draft law on amendments to the Tax Code of Ukraine and the Law of Ukraine “On
banks and banking activities”. It is about the introduction of international
automatic exchange of information on revenues generated through digital
platforms, taxation of e-commerce transactions and provision
equality of taxpayers in the taxation of value added tax.
Points of attention
- Extension of VAT registration to entities with income of UAH 4 million and quarterly reporting
- Rules for taxation of purchases from abroad and preferential tax rates for individuals meeting specific criteria
The Ministry of Finance revealed details of the new tax bill
The document states that:
Starting next year, individual entrepreneurs and legal entities on the simplified taxation system will be registered as VAT payers with income of UAH 4 million and will submit quarterly reports;
the envisaged obligation for digital platforms such as OLX, marketplaces, etc. will require them to identify sellers and report their revenues by January 31;
taxation of purchases from abroad up to €150. Parcels up to €45 are not taxed;
Rules are being introduced for online trading from abroad. VAT will be paid by the platforms themselves or intermediaries;
The bill extends the military levy at 5% for individuals, 1% for individual entrepreneurs of group 3, and fixed payments for other individual entrepreneurs;
Individuals will be able to pay a preferential 5% if they do not have employees, are not sole proprietors, have an income of up to about UAH 7.2 million/year, and work through a separate account;
Income up to 2,000 euros per year will not be taxed.
