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Ukraine VAT digital services from foreign providers – January 2022

Non-resident sellers and marketplaces liable to VAT obligations on e-services 2022

Ukraine is to impose on non-resident providers of digital services to its consumers the obligation to VAT register from 1 January 2022. There will be a VAT registration threshold of UAH 1million (approximately €35,000), with the option to voluntary register. Returns on a simplified basis will be quarterly.

The current Ukrainian VAT rate is 20%. The current repatriation tax on advertisement income will be withdrawn at the same time.

Electronic or digital services subject to VAT

The following supplies are liable to Value Added Tax in Ukraine. This is irrespective if provided by the internet on PC’s, tablets, smart TV, cars etc.

  • Streaming or download media
  • Broadcast TV etc
  • E-books and electronic journals
  • Cloud services
  • Databases and search engines
  • Advertising services

Online educational distance learning services will be exempted from VAT if live interaction between teacher and student(s). Whilst providers and facilitating marketplaces are included, certain intermediaries, including payment processors are excused from becoming deemed suppliers of the taxable services.

Determining VAT place of supply

Providers must track the following pieces of evidence to track if VAT is due in Ukraine:

  • Phone or device SIM card country code
  • IP address
  • Payment address

VAT compliance rules

The following requirements are made of VAT registered business:

  • There is a simplified VAT registration process for non-residents
  • If the VAT registration threshold was passed in 2021, the provider should be VAT registered by 31 March 2022
  • VAT invoices are not required
  • They will electronically file quarterly simplified returns within 40 days of the end of the quarter.
  • Returns may be in Ukrainian or English
  • Any VAT due may be paid in USD or Euro if opted for at registration

Once registered, foreign providers will be listed on a public register. This will enable shoppers to check they are properly managing and VAT responsibilities.

Check our global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

Europe VAT on digital services

Country (click for details) Rate Date Threshold Comments
EU 27 member states 17% to 27% Jan 2015 €10k EU residents; Nil for non-EU
Albania 20% Jan 2015 Nil
Andorra 4.5% Jan 2015 Nil
Belarus 20% Jan 2018 Nil
Georgia 18% Oct 2021 Nil
Iceland 24% Nov 2011 ISK 2 million
Kosovo 18 Sep 2015 Nil
Moldova 20% Apr 2020 Nil
Norway 25% Jul 2011 NOK 50,000
Russia 16.67% Jan 2017 Nil B2C & B2B
Serbia 20% Apr 2017
Switzerland 7.7% Jan 2010 CHF 100,000 on global income
Turkey 18% Jan 2018 Nil
Ukraine 20% Jan 2022 UAH 1m
UK 20% Jan 2015 Nil

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