News - Adopted as a basis the Draft Law “On Amending the Tax Code of Ukraine to Cancel Taxation of Incomes Received by Nonresidents in the Form of Payment for the Production and/or Distribution of Advertisements and to Improve the Procedure for Imposing Value-Added Tax on Transactions of Provision by Nonresidents of Electronic Services to Individuals”

Adopted as a basis the Draft Law “On Amending the Tax Code of Ukraine to Cancel Taxation of Incomes Received by Nonresidents in the Form of Payment for the Production and/or Distribution of Advertisements and to Improve the Procedure for Imposing Value-Added Tax on Transactions of Provision by Nonresidents of Electronic Services to Individuals”

Information Department
Published on 17 February 2021, at 15:49

The purpose of the draft law is to increase the State Budget revenues from value added tax by attracting non-residents who provide electronic services to individuals located in the customs territory of Ukraine and creating favorable conditions for efficient and unburdening administration of tax-related procedures for business and the state.
The Draft Law “On Amending the Tax Code of Ukraine to Cancel Taxation of Incomes Received by Nonresidents in the Form of Payment for the Production and/or Distribution of Advertisements and to Improve the Procedure for Imposing Value-Added Tax on Transactions of Provision by Nonresidents of Electronic Services to Individuals” cancels taxation of nonresidents’ incomes in the form of payments for advertisements; improves the procedure of imposing the VAT on transactions of provision by nonresidents of electronic services to individuals in the customs territory of Ukraine.
The draft Law:
- defines the concept of “electronic services” and specifies the place of their provision;
- establishes the specifics of registration of a nonresident as a taxpayer, determines the taxation basis, the timeframes for paying the taxes, for submitting tax reports, for challenging decisions of regulatory authorities;
- provides for the payment of a tax liability by a nonresident in foreign currency, the simplified procedure for registration of a nonresident VAT payer (remote registration is possible).