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  • Taxation of electronic services provided by non-residents (“Google Tax”)

On June 3, was adopted the Law “On Amendments to the Tax Code of Ukraine regarding the abolition of taxation of income received by non-residents in the form of payments for the production and/or distribution of advertising and the improvement of the taxation procedure for value added tax transactions for the supply of electronic services by non-residents to individuals”(hereinafter – Law).

The Law is aimed to increase state budget revenues from VAT by attracting non-residents who provide electronic services to individuals, on the territory of Ukraine.

List of taxpayers under the Law:

  • a foreign company that provides electronic services in the Internet;
  • a representative office of a foreign company in Ukraine, which provides electronic services.

Electronic services due to the Law are services delivered via the Internet, automated, using information technology and mainly without human intervention, including by installing a special application or application on smartphones, tablets, television receivers or other digital devices.

These services include but not exclusively:

  • supply of electronic copies, provision of access to images, texts and information, including, but not exclusively, a subscription to electronic newspapers, magazines, books, the provision of access and/or download of photos, graphics, video materials;
  • provision access to databases, including the usage of search engines;
  • supply of electronic copies (electronic digital information) and/or the provision of access to audiovisual works, video and audio works, games, including the supply of services for participation in such games, the provision of services for access to television programs (channels) or their packages, except for access to television programs simultaneously with their reception quality through the television network;
  • provision access to information, commercial, entertainment electronic resources and other similar resources, in particular, but not exclusively, posted on platforms for general access to information or video materials;
  • provision of distance learning services in the Internet, the conduct and provision of which does not require human participation, including the access to virtual classrooms, educational resources in which students complete assignments online, and grades are assigned automatically, without human participation (or with minimal participation);
  • provision of a cloud service in terms of the provision of computing resources, storage resources or electronic communications systems using cloud computing technologies;
  • supply of software and updates to it, including electronic copies, providing access to them, as well as remote maintenance of software and electronic equipment;
  • provision of advertising services on the Internet, mobile applications and other electronic resources, provision of advertising space, including by placing banner advertising messages on websites, web pages or web portals.

Below is the list of services, which does not apply to electronic services:

  • delivery of goods/services, the order (booking) of which is carried out via the Internet, using mobile applications and other electronic resources, and the actual delivery is carried out without using the Internet (in particular, accommodation services, car rental, catering services for the supply of products, passenger transport services and other similar services);
  • supply of goods and/or other services, other than electronic services, which include electronic services, if the cost of electronic services is included in the total cost of such goods/services;
  • provision of distance learning services on the Internet, if the Internet is used exclusively as a means of communication between the teacher and student;
  • delivery of copies of works in the field of science, literature and art on tangible media;
  • provision of consulting services by e-mail;
  • provision of services for access to the Internet.


Registration as a tax payer

  • A non-resident is obliged to apply for registration as a taxpayer, if according to the results of the previous calendar year the total amount of its transactions for the supply of electronic services to individuals, the place of supply of which is located in the customs territory of Ukraine, exceeds the equivalent of 1,000,000 UAH.

  • To apply for the registration, the following document shall be submitted in electronic form: Application for registration as a taxpayer; copies of an extract from the relevant business register (trade, banking or other register, which records the state registration of the company, organization) issued in the country of registration of such non-resident; document confirming the assignment of identification (registration, accounting) number (code) of a non-resident in the country of its registration, if the extract from the relevant business register does not contain information about such number (code).

  • The application for registration as a taxpayer shall contain information on the registration of a non-resident in the relevant country, identification data of the non-resident, e-mail address, ground for registration, name foreign currency (euro or US dollar) in which the non-resident will pay the taxes.

If the information of non-resident registered as a taxpayer changes, such non-resident shall notify of the changes in the electronic form through a special portal by submitting applications for re-registration during 10 working days after such changes came in a legal force.

Reporting and Taxation

  • Reporting period is quarter
  • Tax rate – 20%
  • Date of occurrence of tax obligations – last day of the quarter
  • The taxes by a non-resident person registered as a taxpayer shall be paid in foreign currency (EUR or USD) within 30 calendar days following date of occurrence of tax obligations.
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