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The prospects for the Ukrainian “Google tax”

On 17 February 2021, the draft Law No. 4184 introducing Ukrainian VAT on certain services provided by non-Ukrainian companies via the internet (the so-called “Google Tax”) passed the first reading in the Ukrainian Parliament (the “Draft Law“). The Draft Law is subject to further parliamentary consideration, and in order to become a bill, it must be adopted by Parliament in the second (and simultaneously third) reading.

The principal concept proposed by the Draft Law is that the provision of qualifying “electronic services” via the internet by a non-Ukrainian company to an individual customer located in Ukraine shall be subject to 20% Ukrainian VAT.

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