Taxation of electronic services provided by non-residents

The procedure for taxation of electronic services supplied by non-residents to individuals whose place of supply is located in the customs territory of Ukraine is set forth in clause ²⁰⁸¹.2 of the TCU.

If electronic services are supplied to an individual in the customs territory of Ukraine through an intermediary, the intermediary is deemed to be the supplier of such electronic services for the purposes of taxation.

Such an intermediary, if it is a non-resident, shall be subject to the taxation rules established by this Article.

The provisions of this paragraph shall not apply to 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.

Registration as a taxpayer of a non-resident person who supplies electronic services to individuals whose place of supply is located in the customs territory of Ukraine is carried out on the basis of an application for registration as a taxpayer of such non-resident person.

A non-resident person is obliged to submit an application for registration as a taxpayer if, based on the results of the previous calendar year, the total amount of transactions for the supply of electronic services to individuals, the place of supply of which is located in the customs territory of Ukraine, exceeds the amount equivalent to UAH 100,000,000, calculated at the official exchange rate of the Ukrainian currency to foreign currency set by the NBU, effective at 0 o'clock on January 1 of the relevant year.

Such application shall be submitted by March 31 inclusive of the relevant calendar year following the year in which such non-resident person has reached the amount specified in this clause.

A non-resident person who has not reached the amount stipulated in this clause and considers it expedient to voluntarily register as a taxpayer may submit an application for registration as a taxpayer not later than 10 calendar days before the beginning of the reporting (tax) period from which such non-resident person will be considered a taxpayer.

An application for registration as a taxpayer together with copies of an extract from the relevant business register (trade, banking or other register that records the fact of state registration of a company, organization) issued in the country of registration of such non-resident person and a document confirming the assignment of an identification (registration, accounting) number (code) of a non-resident in the country of its registration, if the extract from the relevant business register does not contain information about such number (code), shall be submitted to the central executive body that implements the

The application for registration as a taxpayer shall contain information on the registration of a non-resident in the country of the non-resident, identification data of the non-resident, non-resident to be subject to electronic identification, data on his/her representative, e-mail address, reason for registration, information on confirmation of the fact and period of reaching the amount of transactions for the supply of electronic services to individuals determined for mandatory registration as a taxpayer in accordance with the second paragraph of this clause, as well as foreign currency (euro or US dollar) in which

A non-resident person referred to in this clause shall be deemed to be registered as a taxpayer from the date of entry in the register of taxpayers in case of mandatory registration of a person as a taxpayer or from the first day of the reporting (tax) period following the expiration of 10 calendar days after submission of an application for registration as a taxpayer to the central executive body implementing the state tax policy in case of voluntary registration.

Within 180 calendar days from the date of registration of a non-resident as a taxpayer, such non-resident shall send an official letter to the central executive body implementing the state tax policy confirming the information provided during registration as a taxpayer, including its identification (registration, accounting) number (code) and the name of the non-resident's representative who was electronically identified. If a non-resident person registered as a taxpayer has any changes in his/her accounting information, such non-resident person shall notify the changes electronically through a special portal solution for non-resident users of electronic services by submitting an application for re-registration within 10 business days following the day when the taxpayer's data changed.

The form of application for registration of a non-resident as a taxpayer as defined in the first paragraph of this clause and the form for making changes to the accounting data shall be established in the state and English languages and approved by the central executive body that ensures the formation and implementation of the state financial policy.

Registration of a non-resident as a taxpayer and interaction of such a non-resident with the controlling authority are carried out by means of electronic identification using a non-resident's domain name and/or, at the request of a non-resident, using other permitted technologies of electronic identification of a taxpayer defined for the purposes of the TCU.

The procedure for electronic identification is approved by the central executive body that ensures the formation and implementation of state financial policy, and its official English translation is posted on a special portal solution for non-resident users of electronic services.