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"3 billion UAH per year from advertising services only." Getmantsev assures that Facebook and Viber agree to pay VAT in Ukraine

05.05.2020 0 Comments

"3 billion UAH per year from advertising services only." Getmantsev assures that Facebook and Viber agree to pay VAT in Ukraine

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International IT companies are ready to introduce value added tax for electronic services. This was in a recent interview with BusinessCensor, the notorious Daniil Getmantsev (chairman of the tax, customs and financial policy committee in the Verkhovna Rada of the IX convocation).

In this case, we are talking about bill No. 2634 of December 19, 2019, which provides for a change in the taxation mechanism for foreign non-resident companies. We talked about this initiative earlier this year. It involves the use of VAT in relation to electronic services, which ultimately can and is likely to lead to higher prices for the many services operating in Ukraine of those companies that do not have official representative offices in the country. Daniil Getmantsev is one of the authors of the negotiated initiative. And it seems that work on the bill is in full swing.

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“We met with Facebook and Viber. They are ready for this (tax imposition). Facebook said that it pays VAT in 20 jurisdictions and is ready to do it here (in Ukraine). They have ready-made tools for this. We are creating a convenient mechanism for them (foreign non-resident companies), using which they can pay taxes here. ”

Daniil Getmantsev, chairman of the tax, customs and financial policy committee in the Verkhovna Rada.

Getmantsev also noted that after the adoption of the bill, the budget will additionally receive only 3 billion UAH per year from advertising services.

To the question of how these changes will affect the final cost of the goods, Getmantsev answered as follows:

“Such questions do not cease to amaze me. Maybe we won’t fight smuggling because smuggled goods are cheaper? But smuggling kills our legal business and steals pensioners' money!

Remember how recently the TVs of one well-known Korean brand began to refuse to work in Ukraine (we are talking about the scandal with the blocking of Smart TV in Samsung TVs)? Because they were not intended for the Ukrainian market, but they were smuggled here. That is, smuggling also steals from the consumer!

Therefore, let's think about everyone in society and about the state as a whole. And I don’t think that Ukrainian advertisers who provide services in our state should be discriminated in comparison with advertisers who provide advertising services to us from abroad. ”

It is rather difficult to comment.

Source: BusinessCensor

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