The Ukraine Tax Authorities brought in the proposal of 20% Value-Added Tax (VAT) to be levied on digital services provided by foreign companies to Ukrainian customers.
The procedures for non-resident suppliers of electronic services to register for VAT purposes have not been clearly defined. The new drafted regime stated simplified procedures for the registration for VAT purposes by the foreign digital service companies that can be electronically transmitted over a web portal and also the rules for the Ukraine VAT accounting for foreign suppliers.
The proposal is on an expectation to increase revenue to Ukraine’s state budget and to design an efficient system for administration and tax-related procedures.
