Taxation of income from digital platforms (OLX, Prom, ROZETKA, etc.) may become a reality thanks to the draft law of the Ministry of Finance of Ukraine on collecting taxes from users, which provides for the annual transfer of data on sellers who have made at least one transaction during the year to the State Tax Service (STS), reported People’s Deputy Nina Yuzhanina.
“This draft law also provides that such digital platforms will be tax agents and must withhold personal income tax and military duty from the income received (by sellers – individuals). More details about the draft law will be provided later, when it is registered with the Verkhovna Rada,” the former head of the Verkhovna Rada Committee on Tax and Customs Policy wrote on Facebook on Thursday.
Yuzhanina emphasized that in fact the Ministry of Finance is very selectively implementing the provisions of EU and OECD documents. For example, the authority ignored the transaction thresholds provided for by Council Directive (EU) 2021/514 of March 22, 2021 (DAC7 Directive), upon reaching which the seller’s data is transferred to the State Tax Service.
She noted that such thresholds apply in EU countries, and data is transferred to the tax service only for those sellers whose income from the sale of goods exceeded EUR2 thousand or 30 or more sales were made per year.
“In our country, according to the Ministry of Finance, information should be transferred about all transactions without exception and all funds of an individual should be taxed from 1 hryvnia. And it was this position of the Ministry of Finance that was voiced at the working group discussing this draft law, and other things were also voiced at that meeting (which I don’t even want to write about). People have enough problems, so there will be more,” Yuzhanina added.
In turn, on April 8, the State Tax Service announced that it would not impose fines for the sale of individual property (personal belongings) carried out by citizens on online platforms, since this is not considered a basis for financial or administrative liability for violating the requirements of current tax legislation, however, systematic sale and at the same time a homogeneous range of goods has signs of entrepreneurial (economic) activity.
“The information disseminated by a number of media outlets that the tax service has allegedly begun fining sellers from OLX, Prom.ua, social networks and other platforms and automatically tracks all money transfers to individuals’ accounts, even if they sell personal belongings online, is not true,” the agency emphasized.
