Post by account_disabled on Feb 27, 2024 2:29:31 GMT -5
On Friday, October 2, the project was registered in the Verkhovna Rada of UkraineLaw on Amendments to the Tax Code of Ukraine No. 4184. According to it, 20% VAT is introduced on digital services of foreign companies. It will affect a large number of popular online services in Ukraine. Among them are Facebook, Netflix, Steam, Apple, Amazon and others. “Tax on Facebook”: the new Rada bill on 20% on online services of foreign companies is being discussed on the Internet A new bill has been registered in the Rada What does the law offer? The document will supplement the Tax Code with a new article designed to regulate the taxation of non-resident companies that are providers of online services.
The text of the article states that: Electronic services that non-resident companies supply to individuals on the territory of Ukraine are subject EL Salvador Mobile Number List to VAT (20%); A non-resident company is a company that does not have a permanent establishment in the country. In order to provide online services to Ukrainians, it needs to register as a taxpayer in Ukraine. However, this rule applies only to those whose income for the previous year was at least 1 million UAH. If the amount is less, then registration of the company in the tax system is voluntary; All operations are carried out through the electronic service “VAT for non-resident persons”; If services are supplied in Ukraine through an intermediary, then the intermediary itself is considered the supplier.
Being a non-resident of Ukraine, the intermediary is subject to the same conditions of the article as the supplier. In addition, according to bill No. 4184, the rule on the “tax on foreign advertising” is excluded from the Tax Code. According to Deputy Minister of Digital Transformation Alexander Bornyakov, this removes 20% tax from Ukrainian legal entities and individual entrepreneurs when purchasing electronic services from foreign companies. Subscribe to the hot ones Subscribe to the monthly NEWS DIGEST Enter your E-mail Analogues of the VAT law on online services in the world The authors of the new bill on 20% VAT on online services of foreign companies cite EU countries and Russia as examples.
The text of the article states that: Electronic services that non-resident companies supply to individuals on the territory of Ukraine are subject EL Salvador Mobile Number List to VAT (20%); A non-resident company is a company that does not have a permanent establishment in the country. In order to provide online services to Ukrainians, it needs to register as a taxpayer in Ukraine. However, this rule applies only to those whose income for the previous year was at least 1 million UAH. If the amount is less, then registration of the company in the tax system is voluntary; All operations are carried out through the electronic service “VAT for non-resident persons”; If services are supplied in Ukraine through an intermediary, then the intermediary itself is considered the supplier.
Being a non-resident of Ukraine, the intermediary is subject to the same conditions of the article as the supplier. In addition, according to bill No. 4184, the rule on the “tax on foreign advertising” is excluded from the Tax Code. According to Deputy Minister of Digital Transformation Alexander Bornyakov, this removes 20% tax from Ukrainian legal entities and individual entrepreneurs when purchasing electronic services from foreign companies. Subscribe to the hot ones Subscribe to the monthly NEWS DIGEST Enter your E-mail Analogues of the VAT law on online services in the world The authors of the new bill on 20% VAT on online services of foreign companies cite EU countries and Russia as examples.