"Tax on OLX": What Will Change for Digital Platform Operators
As previously reported by the "Judicial and Legal Newspaper", the Verkhovna Rada supported the automatic exchange of data on income from digital platforms. This concerns draft law 15111-d, also known as the "tax on OLX" law.
For digital platform operators, the adopted draft law establishes obligations regarding the identification of reportable sellers, collection of information about their income, registration with the State Tax Service, and annual submission of reports to the STS for international exchange, as well as performing the functions of a tax agent concerning the income of individual reportable sellers, notes the Ministry of Finance.
Reportable activities include real estate rental, provision of services, sale of goods, and vehicle rental. Importantly, information about sales transactions of goods up to 2,000 euros and up to 30 sales per year is not included in the report.
The Ministry of Finance emphasizes that electronic "bulletin boards" that are used exclusively for advertising or informing about a product/service will also not fall under the new regulation and the corresponding information will not be submitted to the STS.
The draft law provides for the introduction of a free state verification service, which platform operators will be able to use during proper comprehensive checks, simplifying and speeding up the confirmation of seller data, reducing business administrative costs and the risk of errors in reporting.
The Ministry of Finance adds that most provisions will come into force on January 1, 2027, while platform operators will be required to register with the STS by the end of 2026.
"Taxation of income earned through digital platforms under the new rules will begin on January 1, 2027. The rules regarding international exchange of information will apply after Ukraine joins the Multilateral Agreement on the automatic exchange of information about income earned through digital platforms," the statement says.
Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp pages on Facebook and Instagram to stay informed about the most important events.
