News Share

The Tax Hub

Daily Tax Newsletter

Ukraine

12 October 2020

Responsive image

Ukraine Parliament Considering Draft Law for VAT on Electronic Services Supplied by Non-Residents

The Ukraine parliament is considering draft Law 4184, which was received on 2 October 2020 and provides new rules for the collection of VAT on electronic services provided by non-residents. This includes that a non-resident who does not have a permanent establishment in Ukraine and supplies electronic services to individuals in Ukraine will be subject to VAT on their supplies and required to register.

The requirements would apply where revenue from the provision of electronic services to individuals in Ukraine exceeds the equivalent of UAH 1 million in the previous calendar year as per the official exchange rate of the National Bank of Ukraine on 31 December of the year. Voluntary registration is also allowed where the revenue threshold is not met but is expected to be met.

Supplies of electronic services defined in the draft law include, but are not limited to:

  • the supply of images or texts, including photos, e-books, and magazines;
  • the supply of audiovisual works, custom videos, games, gambling, including the supply of services for participation in such games;
  • the provision of access to information, commercial, educational, and entertainment electronic resources, and other similar resources;
  • the provision of cloud technologies;
  • the supply of (transfer of rights to use) software and updates, as well as remote servicing of software and electronic equipment; and
  • the provision of advertising services on the Internet, mobile applications, and other electronic resources.

The draft law also includes provisions for the registration of non-resident electronic service providers, including provisions for issuing notices to non-resident providers of their need to register, which must be complied with within three months. Further, provisions are included for simplified VAT returns for non-resident providers, which would be required to be filed on a quarterly basis.

As drafted, the VAT requirements would apply from 1 January 2022.

Powerful Tax Tools

NEW

FX Rates

Global FX Rates including Tax Year Average FX Rates and Spot Rates for all Reporting Currencies.

NEW

Corporate Tax Rates

Corporate tax rates, surtaxes, and effective tax rates for the current year, as well as historical rates and approved future rates.

NEW

Country Analysis

Detailed tax guidance for companies doing business in over 100 countries, including summaries and snapshots of key tax facts and issues.

NEW

Cross Border Tax Calculator

Calculate total tax costs and benefits of a cross border transaction including withholding tax, participation exemption and foreign tax credit rules.

NEW

Cross Border Tax Rates

Provides Domestic, treaty and EU cross border tax rates for over 5,000 country combinations for 9 different payment streams.

NEW

OECD BEPS Project

Complete overview of the OECD BEPS Project, including daily BEPS news, country adoption of BEPS measures, and an overview of the 15 BEPS Actions.

NEW

Tax Calendar

Customizable calendar tool that tracks corporate income tax, value added tax and transfer pricing obligations by country or entity.

NEW

Tax Forms

English translations of key tax forms for over 80 countries, including tax return forms, treaty benefit forms, withholding tax forms, and more.

NEW

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

NEW

Worldwide Tax Planner

Calculates the worldwide tax cost of what-if scenarios based on legal entity structure, taxable income, and cross border transactions.

NEW

Certified Rates Report

Customizable Certified Rates Report providing updated corporate and withholding tax rates at the end of each month for over 100 countries.

NEW

Withholding Tax Minimizer

Enables quick calculation of tax costs and benefits of cross border transactions considering all possible transaction combinations and optimal routes.

NEW

VAT Rates

Provides value added tax (VAT) rates, goods and services tax (GST) rates and other indirect tax rates for over 100 countries.

NEW

NOL Calculator

Country specific calculator to determine how net operating losses can be utilized in carryback and carryforward years.

NEW

Transfer Pricing Calculator

Calculates TP ratios under various TP methods and calculates the difference between target ratios and actual ratios.

NEW

Individual Income Tax Rates

Individual tax rates for over 100 countries.

Play of the Day

Worldwide Tax Treaties

Repository including thousands of tax treaties (in English), OECD, UN and US Models, relevant EU Directives, Technical Explanations, and more.

We’re here to help

We’re here to answer any questions you have about the Orbitax products and services.

Send us a message

Who’s behind Orbitax?

We’re committed to providing high value, low cost tax research and management solutions.

Learn More