The Main Department of the State Tax Service in Kyiv informs that from January 1, 2022 VAT is charged and paid by a non-resident person who does not have a permanent establishment and supplies to the customs territory of Ukraine to individuals, including natural persons – entrepreneurs (hereinafter – FOP) , not registered VAT payers, electronic services, except for non-residents, which:
supply electronic services under intermediary agreements, if the invoices (receipts) provided to customers of electronic services specify the list of such electronic services and their actual supplier;
carry out exclusively processing of payments for electronic services and do not participate in the provision of such electronic services;
provide electronic services directly through its permanent office in Ukraine.
For reference: starting from January 1, 2022, taking into account the amendments to the Tax Code of Ukraine (hereinafter – TCU) by the Law of Ukraine of June 3, 2021 № 1525-IX “On Amendments to the Tax Code of Ukraine to abolish taxation of income received by nonresidents in the form of payment for the production and / or distribution of advertising, and improving the procedure for value added tax on transactions for the supply of electronic services by nonresidents to individuals “(hereinafter – Law № 1525), introduced taxation of electronic services located in the customs territory of Ukraine in the case of supply of such services to a natural person (including a private individual who is not registered as a taxpayer) by a non-resident, according to the rules established by Art. 208 note 1 of the TCU.
Law № 1525 supplemented the list of persons – VAT payers (item 9, item 180.1 of Article 180 of the TCU), which includes a non-resident person who does not have a permanent representative office and supplies individuals to the customs territory of Ukraine (including private individuals not registered VAT payers), electronic services, including by providing access to electronic services through the electronic interface, providing technical, organizational, informational and other opportunities provided by the use of information technology and systems to establish contacts and agreements between sellers and buyers and / or supplies such electronic services under intermediary agreements on its own behalf, but on behalf of the electronic service provider, is a VAT payer.
However, this list does not include non-residents who:
supply electronic services under intermediary agreements, if the invoices (receipts) provided to customers of electronic services specify the list of such electronic services and their actual supplier;
carry out exclusively processing of payments for electronic services and do not participate in the provision of such electronic services;
supply electronic services directly through their permanent establishment in Ukraine (item “d” of item 14.1.139 item 14.1 article 14 TCU).
Source: gov.ua
