The Ukrainian government has approved three separate tax bills – on digital platforms, 5% military levy for individual entrepreneurs (IEPs), and taxation of parcels up to €150 and will submit them to parliament in the near future. The issue of VAT (value added tax) for IEPs is currently being finalized, and the final decision on all changes now depends on a vote in the Verkhovna Rada. This was reported by the Ministry of Economy of Ukraine. Each of the three bills concerns a separate segment of the economy and provides for specific changes.
taxation of digital platforms;
The first bill introduces new rules for digital services through which Ukrainians earn money – taxis, delivery, online shopping, and other platforms. If the law is adopted, companies such as Uklon, Bolt, Uber, Glovo, and OLX will act as tax agents. Platforms will automatically withhold taxes from the income of their partners (taxi drivers, couriers, sellers). The total rate will be 10% (5% personal income tax + 5% military levy). It is noted that these funds will be immediately transferred to the budget. At the same time, a preferential threshold is provided, if a person’s income through the platform per year does not exceed the equivalent of 2,000 euros, the tax does not need to be paid. However, it is noted that a limit of 30 sales is set during the reporting period (calendar year).
5% military levy for individual entrepreneurs;
The second bill concerns entrepreneurs and provides for fixing the military levy at 5%. This is not only about the period of martial law. The government proposes to maintain this levy for three years after its end. The payment will become a permanent element of the tax burden for individual entrepreneurs. It is noted that the funds will continue to be directed to financing defense needs.
taxation of international parcels.
The third bill changes the rules for international shipments and online purchases from abroad. From now on, parcels worth up to 150 euros will be taxed. The current exemption, which allowed not to pay taxes for such shipments, is being canceled.
What will be subject to taxation
However, there are exceptions, for some goods you will have to pay, even if the cost of the cargo is less than 45 euros. Among them:
excise goods;
perfumes in a volume of more than 50 grams, or toilet water in a volume of more than 0.25 liters;
coffee in a volume of more than 500 grams or coffee extracts or essences in a volume of more than 200 grams;
tea in a volume of more than 100 grams or tea extracts and essences in a volume of more than 40 grams.
If approved, this will mean that almost all purchases from foreign online stores will be subject to taxation, which may affect their final cost. The issue of introducing VAT for entrepreneurs has not yet been included in these draft laws.
“The draft law on VAT for some individual entrepreneurs is currently at the stage of coordination and finalization and will be submitted for approval in the near future,” said Finance Minister Serhiy Marchenko. After today’s approval, all three draft laws will be submitted to the Verkhovna Rada of Ukraine separately. Each of them will undergo a full review procedure – from inclusion on the agenda to several votes.
