Main points
- The Verkhovna Rada had difficulty adopting the bill on the “OLX tax”, which is a requirement of the IMF.
- After the changes, the draft law became more lenient for users, in particular, self-employed people can pay taxes as individuals, without special accounts and mandatory disclosure of bank secrecy.
The vote for the “OLX tax” almost failed again / fintechinsider.com.ua
The Verkhovna Rada tried for the second day in a row to vote on including the “OLX tax” bill on the agenda. This is one of the key demands of the IMF.
What happened during the vote?
On April 7, one vote was not enough to include the issue on the agenda, and the next day, two votes were needed, RBC-Ukraine reports.
On April 8, the document was put up for consideration, but the first attempt failed — only 224 votes were collected out of the required 226. After that, Speaker Ruslan Stefanchuk initiated a second vote, explaining this by the fact that not all alternative projects had been announced. The second attempt was successful — 234 votes were in favor.
By the way, this is an initiative that should bring Ukraine closer to international rules for the exchange of tax information. In particular, it was envisaged to automatically receive data on citizens' income from platforms such as YouTube, TikTok, or services such as Uber and Bolt.
After revision, the draft law became more lenient for users:
- the self-employed were allowed to pay taxes as ordinary individuals;
- removed the requirement to open special accounts and waived the mandatory disclosure of banking secrecy;
- Instead of a complex declaration system, they planned to implement a simpler mechanism – tax notifications from the State Tax Service.
What does OLX say about the “OLX tax”?
The OLX platform has advocated for the revision of the draft law on amendments to the Tax Code, which regulates income from digital platforms, Interfax-Ukraine writes.
The main issue is the approach that wants to make digital platforms tax agents. That is, they are the ones who should withhold and remit taxes for users.
The service explains: the European DAC7 directive, which became the basis for the draft law, has a different logic – it provides for information exchange and reporting, but does not transfer the functions of tax agents to platforms.
This approach creates a disproportionate regulatory burden and significant operational risks for the development of Ukraine's digital economy, especially for platforms through which, as in the case of OLX, financial settlements between participants are not carried out,
– added to OLX.
Another concern is the mandatory full identification of all users who start selling on the platform. OLX believes this is an excessive step that could create unnecessary barriers for people.
What do you need to know about taxes in Ukraine?
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The European Business Association supports the abolition of VAT benefits for goods cheaper than 150 euros and proposes to amend the Customs Code.
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The abolition of the privilege will help Ukraine bring its tax and customs rules closer to European Union standards, reducing budget losses, which, according to experts, may exceed 43 billion hryvnias since the beginning of the war.
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Parliament adopted draft law No. 15110, extending the military levy for 3 years and creating a special fund for military needs.
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This year, it is planned to collect 163 billion hryvnias from military levies, which is an IMF requirement to receive an aid tranche.