“Google Tax” approved by the Verkhovna Rada – who will pay

03.06.2021

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The Verkhovna Rada of Ukraine approved the bill No. 4184, which obliges Internet giants who work in Ukraine to pay taxes to the Ukrainian state budget. The document was supported by 283 MPs, UATV informs.

The law abolishes the repatriation tax on advertising revenues as it constrains the development of advertising services. Thus, international companies that operate in the information space of Ukraine and earn on online advertising will pay taxes in Ukraine, VAT in particular. At the same time, it is noted that the project will not concern an ordinary user of social networks and search services.

It is noted in the explanatory note to the draft law, that the establishment of special rules for taxation of VAT on electronic services is becoming a common practice in other states, for example, in the countries of the European Union.

The bill also defines the concept of “electronic services” and specifies the place of their delivery, in addition, it establishes the specifics of registering a non-resident as a taxpayer, determines the base and terms for paying tax, submitting tax reports, appealing decisions of regulatory authorities.

In addition, it provides for the payment of the tax liability by a non-resident in foreign currency, a simplified procedure for registering a VAT payer – a non-resident (it can be done remotely).

Read also: It is necessary to increase taxes but so that no one goes “in the shadows”, – the president

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date 03.06.2021
categories Economics
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