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.