On April 29, the Cabinet of Ministers approved a new bill concerning tax reporting for digital platform operators. This relates to online services that provide taxi, real estate rental, marketplace services, and more.
This was announced by the government representative in the Verkhovna Rada, Taras Melnychuk.
According to the document released by Yaroslav Zheleznyak, the deputy head of the Verkhovna Rada's committee on tax and customs policy, digital platform operators will be defined as tax agents and will automatically collect taxes from citizens earning income from the sale of goods or provision of services through these platforms.
The tax rate will be set at 5%, with an additional 5% military levy.
The activities covered include any of the following carried out by sellers for a fee:
- leasing real estate, including residential and non-residential properties, as well as any other real estate and parking spaces;
- personal services;
- sale of goods;
- leasing vehicles.
It is also expected that the tax rate may increase to 18% if the annual income exceeds a specified limit – 834 minimum wages.