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.Ukraine’s parliament imposes additional taxes on Apple, Netflix, FacebookRead More