The Ukrainian president signed the law that updates taxation for non-residents, says the president’s office in a Monday announcement.

According to its introductory note, the policy aims to ‘increase revenues’ by imposing  a value-added tax’  on non-residents ‘providing electronic services’ to Ukrainians.

According to the policy, bigh tech international companies will be imposed 20% VAT.

Among those facing the new tax  are Facebook, Netflix, Tik Tok, Instagram, YouТube, Viber and other big-tech names.

Key points

The list of “electronic services” will  include

  • supply of various content, such as images, photos, e-books, magazines, audio-visual content, ondemand video, games,
  • provision of access to various web resources, cloud s torage services,
  • supply of software (including updates) (except for on tangible mediums), services on remote maintenance of software and electronic equipment,
  • advertising services on the internet, mobile apps and other electronic resources;

New tax rules for non-residents

▪ the registration of a qualifying non-resident as a VAT-payer shall be performed online

▪ to qualify for the above VAT, “electronic services” must be provided via internet and to an individual customer located in Ukraine

▪ the annual turnover from the supply of “electronic services” triggering VAT obligations – UAH 1 million (approx. EUR 30,200)

▪ tax invoice are not applicable

The law put forth by ‘Servant of the People’ MPs makes suppliers of ‘electronic educational services’ exempt from this taxation.


Danylo Getmantsev,  who heads Ukraine’ parliament finance committee,  assured the move will not affect the end users.