Draft Law No. 15111-d: Fresh Reporting Obligations for Digital Platforms
Ukraine's parliamentary committee on finance, tax, and customs policy has urged the Verkhovna Rada to approve Draft Law No. 15111-d in its second reading and as a whole. Often referred to as the 'OLX tax,' this legislation introduces updated reporting standards for online marketplaces. The bill is scheduled for discussion on May 12.
Under the proposed rules, digital platform operators will act as tax agents, withholding income tax on earnings individuals generate through these platforms. A preferential rate of 10% will apply, with no separate military levy required. However, individuals selling goods via platforms will enjoy an exemption on annual earnings up to €2,000.
Addressing Imbalances Between Resident and Non-Resident Platforms
The draft law also aims to level the playing field between resident and non-resident platform operators, and includes provisions to block websites of platforms that violate tax regulations. Notably, individual entrepreneurs (known as FOPs) face no restrictions when operating through these platforms. Additionally, the State Tax Service has been tasked with conducting outreach to explain the new requirements.
“The committee recommended that the Verkhovna Rada of Ukraine adopt Draft Law 15111-d in the second reading and as a whole,” stated committee chairman Danylo Hetmantsev.
This move is designed to streamline tax procedures for those using online marketplaces to sell goods.
Separately, on March 10, the Verkhovna Rada reviewed tax Draft Law No. 14025, which garnered 168 votes out of the 226 required for passage. The committee's decision and the upcoming review of the new bill underscore the urgency of adapting the tax system to modern digital business practices.
If enacted, Draft Law No. 15111-d could significantly reshape Ukraine's e-commerce landscape by promoting transparency and ensuring equal conditions for all market participants. The introduction of these new reporting rules also aims to curb the shadow economy in this sector, thereby boosting state budget revenues. Successful implementation will depend on active educational efforts among entrepreneurs, as the new rules may pose challenges during the initial adaptation phase.
In a related development, the Ukrainian Parliament has also approved new tax regulations for delivery services like Glovo and Bolt Food, marking a significant shift in the taxation landscape for digital platforms. These changes, set to take effect in 2027, reflect the government's ongoing efforts to modernize tax policies in response to the growing e-commerce sector. For more details on these updates, see how they will impact operators and consumers alike in our comprehensive coverage on the new delivery platform regulations.