Tech giants that became the largest payers of the «Google tax» in Ukraine

In Ukraine, the "Google tax" has resulted in UAH 10.2 billion in state budget revenues. Google, Google Play, and Netflix are currently the largest payers of value-added tax (VAT) on digital services, according to Danylo Hetmantsev, chairman of the Verkhovna Rada's Tax Committee.

According to him, as of October 1, 2023, more than 98 non-resident digital service providers have registered as VAT payers in Ukraine and paid UAH 10.2 billion to the state budget.

Hetmantsev emphasized that in 2022, the amount of payments amounted to UAH 4.3 billion, and this amount increased to UAH 5.9 billion in 2023 (as of October 01, 2023).

The envoy reminded that before bringing the giants of the digital industry to taxation in Ukraine, extensive work was done to clarify legislative provisions that meet international standards.

"The largest payers of VAT on digital services are currently Google, Google Play, and Netflix, and their payments in July-September this year increased (in foreign currency) by 5 percent compared to April-June and amounted to 21 million euros," Hetmantsev emphasized.

He also noted that Fenix International Limited, a provider of services to the adult entertainment industry "OnlyFans," paid more than USD 1 million in VAT this year (compared to USD 889.5 thousand in 2022).

"The campaign of declaration by non-residents for the third quarter of 2023 is currently underway. Based on the first 15 declarations submitted as of October 17, 2023, we can already predict a significant increase in the amount of VAT charged for digital services. The final results will be available in the second half of November 2023," Hetmantsev summarized.