WTS in Ukraine

Law #466 (in force since 23 May 2020, with several further amendments) supplemented TP rules with the new provisions on business purpose.

November 2021 saw Ukrainian Parliament approve a bill introducing another set of amendments to the Tax Code of Ukraine, taking effect from 1 January 2022.

In 2021, the State Tax Service of Ukraine notably intensified control over TP matters. Thus, according to the Tax Code of Ukraine, TP control consists of three stages.

Under the general rule, the supply of goods/services in the territory of Ukraine shall be subject to VAT. And the tax code of Ukraine provides for quite a broad definition of what shall be recognised as the “supply of services”, i.e. any transaction that is different to the “supply of goods”.

Introduction of 20% VAT on digital services supplied to individuals located in Ukraine by non-resident businesses.

The Ukrainian Parliament has recently adopted the law introducing a 20% VAT on digital services supplied to individuals located in Ukraine by non-resident businesses (hereinafter – the Law).

Law No 141-IX of 2 October 2019 introduced comprehensive changes to the Customs Code of Ukraine aimed at making the rules on Authorised Economic Operators (AEO) operational and bringing them in line with similar European regulations.

Our Ukraine colleagues explain Law 466-IX that has introduced comprehensive changes within the Ukrainian tax code, including the implementation of the BEPS three-tier reporting standard.

Article 52 of the Ukraine Law “On International Private Law” specifies that employment relations are governed by the law of the country where the employment is actually exercised, unless otherwise set out by the law or respective international treaty.

Ukraine recently introduced new proportional adjustment rules, which could lead to a reduced risk of double taxation triggered by one-sided TP adjustments.

An overview on the draft law #1210 which introduced new amendments to the Ukraine tax code.

Ukraine follows the global trend of taxing the cross-border sales of digital services from foreign suppliers.

The start of 2020 saw major amendments proposed for the Tax Code of Ukraine, affecting individuals as well.

Only state and municipal enterprises are exempt from the obligation to submit information about their beneficiaries

New provisions in Article 39 the Tax Code of Ukraine represent the implementation of TP-related BEPS Actions into Ukrainian tax law

To maintain the competitiveness of domestic software developers tax benefits for transactions on supply of software products were introduced  

Overview of reported controlled transactions and TP audits since 2013

Non-resident individuals are subject to personal income tax (PIT) in respect of their Ukrainian-source income

Documented and non-documented transactions are subject to TP control