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Propresidential MPs want to tax Facebook, Google services

The price of online services can increase by 20%.

Propresidential MPs want to tax Facebook, Google services
Photo: Depositphotos/guynamedjames

A bill which seeks to tax the services of a number of key Western Internet corporations, such as Google, YouTube, Facebook, Apple, Adobe and Netflix, has been registered with the Ukrainian parliament. It was sponsored by a group of MPs from the propresidential Servant of the People party in December 2019

According to the proposed changes to the Tax Code, non-residents who do not have a permanent office in Ukraine, but who directly supply electronic services to individuals in the customs territory of Ukraine will have to pay VAT.

Electronic services include:

· supply of images or texts, photos, e-books and magazines;

· supply of audio, video, games, gambling and related services;

· access to information, commercial, educational and entertaining electronic resources;

· access to cloud technologies;

· supply (based on license) of software and updates to it, as well as remote support of software and electronic equipment;

· online advertising services, mobile applications and other electronic resources.

For Ukrainians, this will mean that Western Internet services will rise in price by 20%, as they will include the amount of VAT.

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