The Verkhovna Rada has adopted a law on taxation of income received through digital platforms. The new rules will affect sellers of goods, landlords, and drivers of taxi services operating through online platforms. The law will take effect on January 1, 2027, and the tax burden for participants in the system will be 10%. This is reported by Visit Ukraine.
Who will the new 'OLX tax' apply to
The new mechanism is aimed at Ukrainians who regularly earn through digital services and marketplaces.
It applies to:
- sellers of goods on OLX, Prom, and other platforms;
- drivers of Bolt, Uklon, and Uber services;
- owners of housing or transport who rent out property via online services;
- individual service providers through digital platforms.
Only individuals aged 18 and over who operate without hired employees and do not trade in excise goods will be able to benefit from the new regime.
What tax will be payable
The law provides for a single payment of 10% of income.
This will include:
- 5% personal income tax;
- 5% military levy.
The government explains the innovation as a desire to legalize online earnings and offer a more favorable tax regime compared to the standard rate of 23%.
At the same time, the annual income of the taxpayer must not exceed 6.7 million hryvnias.
Sale of personal items will not be taxed
The law includes an exception for citizens selling their own used items.
If the total income from such sales does not exceed the equivalent of 2000 euros per year, no tax needs to be paid.
Therefore, selling an old smartphone, furniture, children's items, or books will not be considered entrepreneurial activity.
How the new system will work
One of the main features will be the automatic administration of the tax.
After the system is launched, the digital platforms themselves will perform tax agent functions. They will identify users, withhold 10% of income, and transfer the funds to the budget.
This way, users will not have to submit declarations or independently report to the tax service.