VAT on digital sales in Ukraine
February 21, 2020
Ukraine‘s parliament is considering to draft law according to which non-residents that provide electronic services to Ukrainian residents (B2C sales) will be obliged to register for and collect VAT if such taxable sales of electronic services exceeds UAH 1 million per year. The proposed effective date is 1 January 2020.
As per draft law electronic services will include:
The services that would not be qualified as electronic services:
What would be the consequences of late VAT registration?
Government may apply the fine for late registration or violation of other tax registration requirements in an amount of UAH 510 for the legal entities.
If you have any concerns about VAT in Ukraine, please do not hesitate to contact us.