Ukraine's Parliament registered a draft law No. 2634, which proposes to introduce a 20% value-added tax on electronic services provided to individuals from non-resident companies of Ukraine, such as Apple Distribution International, Google Commerce, Microsoft Ireland, Netflix International B.V., Wargaming Group, Bloomberg, Alibaba, Booking.com. The corresponding draft law is published on the official website of the Ukrainian Parliament.
The author of the initiative is Danylo Hetmantsev, the MP from the Servant of the People party and the chairman of the Parliamentary Committee on Finance, Taxes and Customs Policy.
The explanatory note to the bill states that the activities of non-resident companies providing digital services in Ukraine are now carried out without proper taxation, which according to the authors of the law, leads to losses in the state budget and creates a non-competitive environment for the resident payers. Thus, the basic principles of equality and neutrality of taxation of the taxpayer are being violated.
The explanatory note also touches upon an international routine, when establishing special rules for the VAT taxation of electronic services has become a common practice in the EU countries, Australia, Belarus, Kazakhstan, Russia, etc.