On June 3, 2021 the Verkhovna Rada of Ukraine adopted Draft Law No. 4184 “On Amendments to the Tax Code of Ukraine regarding the taxation of value added tax on transactions for the supply of electronic services by non-residents” (hereinafter – the “Draft Law”), which introduces VAT taxation for electronic services the delivery place of which is in Ukraine.
According to the Draft Law, international companies that supply electronic services (including subscriptions, access to copyright works, online resources, databases, online advertising) in Ukraine will be subject to VAT.
For such non-residents, there is a simplified registration procedure with the possibility to fill in the forms in English, as well as a simplified reporting procedure.
It is also envisaged that tax payments will be made in US dollars or euros to a special currency account of the treasury.
The Draft Law has now been adopted by the Verkhovna Rada of Ukraine and submitted for the President’s signature. Its provisions are expected to come into force on 1 January, 2022.
How SCHNEIDER GROUP can help
If you would like to receive more information about whether the provisions of the Draft Law apply to your business, as well as about the procedure for reporting and paying taxes, please contact us. Specialists of SCHNEIDER GROUP legal practice in Ukraine are ready to advise you on the peculiarities of the current legislation of Ukraine in this area.