"Google tax": UAH 12.6 billion paid by large international companies in Ukraine in 2024
In 2024, international non-resident companies providing electronic services to individuals in the customs territory of Ukraine declared over UAH 12.6 billion in tax liabilities. This is equivalent to EUR 130.6 million or USD 151.2 million. The respective reports were submitted by 125 taxpayers participating in the so-called "Google tax" system.
We have significant growth dynamics compared to 2023:
- the number of registered taxpayers increased by 28 people;
- the amount of tax liabilities increased by almost UAH 5 billion.
For comparison, in the same period of 2023, 97 taxpayers filed reports, declaring UAH 8 billion in tax liabilities (EUR 105.8 million and USD 118.9 million).
Among the companies that paid the largest amounts of tax are the owners of popular online resources: upwork.com, netflix.com, apple.com, facebook.com, instagram.com, valvesoftware.com, etsy.com, google.com, playstation.com, aws.amazon.com, bolt.eu. In total, they declared and paid over UAH 10.2 billion in VAT (EUR 121.8 million and USD 119 million).
As of February 1, 2025, a total of 131 non-resident VAT payers providing electronic services to individuals were registered in Ukraine.
As a reminder, pursuant to Article 2081 of the Tax Code, starting from 1 January 2022, non-resident companies that provide electronic services to Ukrainian individuals are required to register as VAT payers and pay 20% VAT on the supply of such services.
The obligation to register arises if the total amount of supply exceeds UAH 1,000,000 in the last 12 months.
The introduction of this tax contributes to budget revenues and creates a level playing field for Ukrainian and international companies operating in the digital services sector.