VATLive > Blog > Ukraine > Ukrainian VAT on digital services January 2022

Ukrainian VAT on digital services January 2022

  • Nov 10, 2020 | Richard Asquith

The Ukrainian parliament is considering imposing VAT on foreign providers of digital services from 2022. This is a delay from the original 2021 plan. See Avalara’s global VAT on digital services tracker.

A Bill in Parliament includes the following elements:

  • Simplified VAT registration and returns (without deductions) processes
  • Withdrawal of the current withholding tax on advertising income
  • Exempt educational services
  • Electronic Services under consideration:
    • Photos, e-books and journals
    • Steaming or download media
    • Online gaming
    • Databases
    • Internet access services
    • Advertising
    • Cloud-based e-services and storage
    • Software licenses
    • Electronic information
  • Not require VAT invoices on B2C sales
  • Extend the liability to marketplaces and similar electronic intermediaries
  • Determining the location of customers

The bill details the following ways of identifying the location of the consumer and therefore the obligation to charge Ukrainian VAT:

  • SIM card country code
  • IP address of device
  • Address of consumer for billing
  • Bank account used for payments

Need help with your Ukrainian VAT compliance?

Researching Ukrainian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara
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