Digital Services VAT Tax Plan for 2022
Ukraine is looking to tax digital services in 2022. The advances in technology have changed our world a lot. As such, taxes need to adapt to the new norms as well. Following the latest trend of countries taxing digital services providers Ukraine is looking to also impose a tax in companies offering digital services in Ukraine.
The plan for Ukraine was to introduce the digital services tax in 2021 but it seems that the date now has been updated to 2022. A draft bill proposal has been revealed to introduce the rules for this digital services tax.
As usual the benefits of this tax will be twofold for Ukraine. Firstly the economy will benefit from the additional revenue produced by this tax and at the same time this digital services tax will level the playing field between domestic companies offering digital services and the companies that offer these services from abroad.
This new digital services tax will be a 20% VAT tax on foreign digital services providers that provide these services to Ukrainian customers.
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