Reminder: Ukraine to apply VAT on digital services from January 2022

30 November 2021

From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses.

At present, non-resident businesses providing digital services in Ukraine don’t have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Ukrainian resident providers, the Ukrainian tax authorities have confirmed that VAT will be charged at 20% on these types of transactions from 2022.

This new tax will only apply to non-resident businesses with annual sales in Ukraine above a calendar year threshold of UAH 1 million (approx. £28,000), and any non-resident business that exceeded this threshold in 2021 will need to VAT register by 31 March 2022. The Ukrainian tax authorities also confirmed that there will be a simplified VAT registration process for any non-resident businesses impacted.

This new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software, and internet services.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

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