The Ukraine State Tax Service has issued a guidance on changes in the taxation of supplies of electronic services by non-residents and payments to non-residents for production/distribution of advertising in Ukraine from 1 January 2022. The changes were introduced by Law No. 1525-IX of 3 June 2021, which provided new rules for the collection of VAT at the standard rate of 20% on electronic services provided by non-residents. As previously reported, this includes that a non-resident who does not have a permanent establishment in Ukraine and supplies electronic services to individuals, including individual entrepreneurs not registered for VAT (B2C supplies) in Ukraine will be subject to VAT on their supplies and required to register. In this respect, the STS guidance covers the type of electronic services that are within scope for VAT, including delivery of electronic copies or granting access to images, texts, and information, providing access to databases, supply of electronic copies and/or granting access to audiovisual works and games, etc.
Source Orbitax
