On 3rd of June 2021 Ukrainian parliament has introduced new value-added tax (VAT) regulations for non-resident e-commerce businesses that will take effect from 1st of January 2022.
Currently, non-resident e-commerce businesses that sells digital goods and services in Ukraine do not have to charge VAT on such sales, therefore, to eliminate this unfair advantage of non-resident e-commerce businesses Ukrainian tax authorities have introduced amendments to current VAT regulations and announced that starting as of 1st of January 2022 VAT will be levied on digital transactions between Ukrainian nationals and non-resident e-commerce businesses if certain thresholds will be reached by such non-resident businesses.
VAT on digital transactions will apply only to non-resident e-commerce businesses whose annual B2C sales in Ukraine exceeds 1 million UAH (approx. – 31.000,00 EUR) per year.
A 20% VAT will be applied to various digital transactions streaming services, games, music, applications, movies, e-books, e-magazines, software, and other online services such as:
There are also several exceptions that won’t be affected by new VAT regulations, this includes:
Non-resident e-commerce business will have to prepare a simplified VAT return in Ukrainian or English every quarter and submit it through the electronic portal to Ukrainian tax authorities.
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