ACC Ukraine urges Rada to pass digital platforms tax

Business

2 April, 09:08 PM

The American Chamber of Commerce in Ukraine has called on the Ukrainian parliament (Verkhovna Rada) to pass bills expanding income tax to cover revenues earned through digital platforms and applying VAT to international parcels, the ACC said in a statement on April 2.

“Ensuring stable and sustainable revenues for the wartime State Budget remains a top priority for Ukraine,” the message said.

“Tackling the shadow economy and ensuring a level playing field are essential to support defense needs, recovery, and continued cooperation with international partners.”

The chamber called on all MPs to approve long-awaited reforms and pass bill No. 15111, which would amend the Tax Code and the laws governing banks to introduce the international automatic exchange of information on income earned through digital platforms and tax that income (the so-called OLX law). It also urged support for bill No. 15112, which would amend the Tax Code to apply VAT to e-commerce operations, including removing the VAT exemption for international parcels valued up to EUR150 ($173).

The chamber said these measures align with Ukraine’s commitments under international financial assistance programs and show the country’s readiness to implement reforms.

The chamber also welcomed recent law-enforcement progress against illegal production and distribution of excise goods, singling out the recent operation against a large-scale illegal cigarette production scheme in Chernivtsi Oblast.

“We look forward to the continuation of effective enforcement and further large-scale detections, which will directly contribute to reducing the share of the shadow economy and increasing State Budget revenues,” the statement added.

“It is also important to eliminate tax avoidance schemes involving the artificial fragmentation of large businesses into groups of sole proprietors to reduce the tax burden.”

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