The Verkhovna Rada adopted as a basis draft law No. 4184 on the so-called "Google tax", which proposes to equalize the taxation rules for international technology companies with Ukrainian ones.
235 People's Deputies voted for the corresponding draft law.
As explained by the head of the parliamentary committee on finance, tax and customs policy and one of the authors of the draft law, Danyil Hetmantsev, there is currently no mechanism for payment of VAT from electronic services by non-residents in Ukraine.
"In order to pay VAT, they must register in Ukraine as residents, that is, change their residency. And this entails negative tax consequences for them, and they do not do it," he said, presenting the draft law from the parliamentary rostrum.
According to Hetmantsev, the bill offers a simple mechanism for VAT taxation of non-residents: it allows remote registration in the taxpayer's electronic account, as well as paying tax in foreign currency without being present on the territory of Ukraine. "Such a mechanism operates in 83 jurisdictions of the world," he noted, adding that the absence of such a mechanism leads to an annual shortfall of $3 billion in the state budget.
