Deputies came up with VAT on electronic services provided by foreign non-resident companies
12.02.2020 0 Comments
A draft law on changing taxation of non-residents has been submitted to the Ukrainian parliament. More specifically, he levies VAT on the electronic services provided to Ukrainians, which may ultimately lead to a rise in price for the many services operating in Ukraine of those companies that do not have official representative offices in the country. The Liga.net resource drew attention to the corresponding initiative, at the disposal of which was a copy of the document.
A document refers to a non-resident as a legal entity or an individual who does not have a permanent representative office in Ukraine and who supplies electronic services to individuals in the customs territory of Ukraine independently or is an intermediary in transactions for the supply of electronic services to individuals. As you know, companies like Apple, Facebook, Netflix, operating in Ukraine, do not have representative offices in the country.
Electronic services are understood as providing access to content via the Internet. This can be access to images, photographs, texts, books, magazines, video, audio, games, gambling. This also includes the provision of access to information, commercial, educational and entertainment electronic resources, the provision of cloud technologies for the use of data, the supply of software and updates to it, the provision of advertising services on the Internet, mobile applications and other electronic resources. An exception is email consultation.
After receiving a tax notice with the specified amount payable, the non-resident must pay VAT within three months. In case of violation, the bill provides a fine of 8500 UAH.
A non-resident is required to submit an application for registration as a tax payer if, according to the results of the previous calendar year, the total amount of electronic services provided to Ukrainians exceeds the amount of 1 million hryvnias. It is calculated at the official rate of the hryvnia to foreign currency.
Now the bill is under consideration by relevant committees. Is it necessary to remind once again that the bill has yet to go through all the necessary stages for entry into force (voting in the Verkhovna Rada and signing by the president).