Ukraine to apply VAT on digital services from January 2022

30 June 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 the Ukraine above a calendar year threshold of UAH 1 million (approx. £26,000) and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software and internet services.
 

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