Bill No. 14025 Removed from the Agenda
The Ukrainian Parliament, the Verkhovna Rada, has withdrawn Bill No. 14025, commonly referred to as the 'OLX tax,' from its agenda after failing to secure enough votes for its passage. This marks the third attempt to pass the legislation, which had previously lacked sufficient support. Although the Cabinet of Ministers approved the bill in late summer, its future had remained uncertain. This legislative effort is part of a broader push to modernize Ukraine's tax system for the digital economy.
Bill No. 14025 aimed to impose a tax on sales and services conducted through online platforms, including:
- OLX
- Rozetka
- Glovo
- Airbnb
- Amazon
- Etsy
- Uklon
- Bolt
- Preply
- Upwork
The proposed tax would have been levied on each transaction made through these digital marketplaces. Furthermore, the legislation would have required all adult users of such platforms to declare their income.
Future of Digital Platform Taxation
It is noteworthy that despite shelving this specific bill, the Verkhovna Rada continues to work on separate legislation that would significantly reduce taxes for residential property landlords. A working group within the parliamentary committee on state governance has also proposed introducing transparent regulations for real estate brokerage activities.
Deputy Yaroslav Zhelezniak commented on the situation, stating: 'It was removed because there are no votes for it today, and tomorrow there will be even fewer deputies present. It was put on the agenda because the President demanded a first reading this week, with plans to later incorporate all IMF proposals through amendments.'
Consequently, the future of taxation for income generated via digital platforms remains in question, as the lack of parliamentary support may impact further legislative initiatives in this area.
The withdrawal of Bill No. 14025 highlights the challenges of implementing new tax initiatives in Ukraine, particularly amid ambiguous political backing. This may indicate a broader trend of caution regarding legislative changes tied to digital service taxation, which could affect the country's investment climate. At the same time, ongoing work on a bill to reduce taxes for landlords suggests attempts to stimulate the real estate market and support the economy during a period of crisis.