Tax on OLX could rise to 10%: what changes are proposed in the draft bill

This was announced by MP Nina Yuzhanina. The Verkhovna Rada had previously stated that the draft law concerns the implementation of DAC7 and the taxation of income received via digital platforms.

The Verkhovna Rada Committee on Tax Policy is preparing amendments to the draft law on the taxation of citizens’ income received via digital platforms.

This specifically concerns sales and services via platforms such as OLX and Prom.ua.

According to Nina Yuzhanina, it is proposed to amend the taxation model for such income ahead of the second reading.

Instead of a 5% personal income tax rate and a 5% military levy on citizens’ income received via digital platforms, it is proposed to set a 10% personal income tax rate.

It is planned that this tax revenue will then be distributed between the general budget fund and a special fund for the needs of the Armed Forces of Ukraine.

Yuzhanina pointed out that such a proposal requires amendments to the Budget Code.

According to her, these amendments must be adopted by a separate law, which does not yet exist.

She also noted that the proposal to explicitly link the entry into force of such provisions of the Tax Code to the adoption of amendments to the Budget Code is not currently supported.

Separately, the MP reported that a large number of additional provisions not directly related to digital platforms are planned to be included in the second reading.

What is already known about the draft law

Earlier, the Verkhovna Rada reported that the draft law on the implementation of DAC7 provides for the simplification of the conditions for applying a preferential rate of 5% to income received through digital platforms.

This refers to income earned by individuals from the sale of goods, the provision of services or other activities via digital platforms.

Ukrinform reported in March that the previous model provided for personal income tax (PIT) ranging from 5% to 18% on income from the sale of goods and services via OLX, Prom.ua, Uber, Uklon, Glovo and other digital platforms. The preferential 5% PIT rate, together with a 5% military levy, was to apply provided a special transparent bank account was opened.

Without such a special account, the tax burden could have been higher – 18% personal income tax and 5% military levy.

Now, according to Yuzhanina, another option is being discussed ahead of the second reading – 10% PIT with the proceeds subsequently divided between the budget and a special fund for the Armed Forces of Ukraine.

VAT on parcels from AliExpress and Temu

A separate set of changes concerns international parcels.

According to Yuzhanina, a new approach to taxing goods that Ukrainians purchase via foreign marketplaces is being discussed.

It is proposed to introduce VAT from the first hryvnia for purchases via platforms such as AliExpress or Temu.

Currently, goods worth up to €150 can be received tax-free.

Under the new model, tax would be payable at the time of purchase.

If the marketplace is registered with Ukrainian customs, the platform itself will transfer the VAT.

If not, the tax will be collected from the buyer before the parcel is received.

Yuzhanina warns that this could lead to situations where citizens refuse parcels due to additional charges.

Earlier, RBC-Ukraine also reported that under the new model, non-commercial international parcels worth up to €45 may be exempt from taxation if they contain gifts or personal items.

When the bill may be considered

According to Yuzhanina, the bill could be submitted to the committee for consideration as early as 6 May.

After that, it should become clear exactly which amendments will be prepared for the second reading and whether the 10% personal income tax rate will remain in the final version.

As reported by ThePublic, the Cabinet of Ministers is proposing to introduce a 20% VAT on most international parcels, including purchases from AliExpress and Temu, leaving the exemption only for non-commercial gifts worth up to €45. The decision is one of the IMF’s requirements for continuing funding to Ukraine, but due to its unpopularity, it may be postponed until at least 2027.

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