Selling on multiple marketplaces — how the tax office will calculate your income under the new OLX tax law
One of the most discussed provisions of the law adopted by the Verkhovna Rada on taxing income earned through digital platforms is the non-taxable limit of 2,000 euros per year for selling goods through marketplaces. At the same time, many users have questioned how exactly the tax office will determine whether a seller has exceeded this threshold, especially if they use multiple platforms simultaneously.
The relevant parliamentary committee explained that control will be exercised through reporting by digital platforms and international automatic exchange of information.
How the tax office will receive information about sales
According to the new law, operators of digital platforms will be required to transmit information about users' income.
Reporting will be done once a year in electronic form.
Ukrainian platform operators, as well as platforms from countries that have not joined the international automatic exchange of information system DPI, will submit information directly to the State Tax Service of Ukraine.
At the same time, platform operators from countries participating in DPI will report to the tax authorities of their states. After that, the information will be transferred to Ukraine within the framework of international automatic data exchange.
What happens if a seller uses multiple platforms
The committee notes that the State Tax Service will be able to correlate information received from different platforms.
This will allow monitoring compliance with the 2,000 euro limit even in cases where a person sells goods simultaneously through several marketplaces.
If a seller sells goods on ten different platforms during the year and earns, for example, 1,000 euros on each, the tax service will receive data from all platforms and sum these amounts.
How exceeding the limit will be taxed
If the non-taxable threshold is exceeded, the State Tax Service will determine the amount of the excess and calculate tax only on this difference.
The committee provided an example: if the total income from selling goods through various platforms amounts to 10,000 euros per year, then after deducting the non-taxable 2,000 euros, a 10% tax will be charged on the remaining 8,000 euros.
After that, the tax office will notify the individual about the need to pay the corresponding amount.
Why this mechanism is being introduced
The committee emphasizes that the new rules are part of the automatic exchange of information system about income earned through digital platforms.
The law implements into Ukrainian legislation the provisions of the European DAC7 directive and the DPI mechanism, which are already applied in European Union countries and several other states.
According to committee representatives, this will allow controlling income earned through digital platforms without requiring users to undergo additional bureaucratic procedures or the obligation to file annual declarations.
Recall that earlier the relevant committee explained that after the law comes into force, marketplaces, taxi services, delivery services, and other digital platforms will have to register with the State Tax Service, identify users, withhold taxes, and provide tax authorities with information about income earned through such services.
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