Ukraine’s parliament imposes additional taxes on Apple, Netflix, Facebook

By The Kyiv Post / June 4, 2021

Ukraine’s parliament passed a bill on June 3 that imposes additional taxes on foreign companies like Apple, Netflix, Amazon and Facebook.

According to the new legislation, foreign tech companies that are not registered in Ukraine will pay a 20% value-added tax (VAT) for digital services they provide to local users. The bill targets content like images, photos, electronic books, magazines, games and foreign TV channels. Among other services are gambling, online advertising, data storage, and the supply of software.

This bill sparked controversy among Ukrainian tech experts and lawmakers. Although the taxation of non-residential tech companies is good for the state budget, it can also entail higher expenses for tech companies and, as a result, their users.

Topics: Digital content, Legal, News, Policy making, Taxes

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Launched in 1995, Kyiv Post is Ukraine’s leading English-language newspaper, produced by a team of Western and Ukrainian journalists. Over the years, the weekly newspaper has led the charge for a free press in Ukraine, and has played roles in the Georgiy Gongadze scandal, the Orange Revolution and other significant Ukrainian events. The Kyiv Post’s IT coverage is sponsored by Looksery, Ciklum, Steltec Capital and SoftServe. The content is independent of the donors.

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