More Fairness, Less Shadow Schemes: IT Ukraine Association Supports the New Tax Law

IT Ukraine Association supports the adoption of Draft Law No. 14025 on international automatic exchange of income information earned through digital platforms.

 

The IT Ukraine Association supports the adoption of Draft Law No. 14025 on the international automatic exchange of income information earned through digital platforms. ITU considers the development and adoption of Draft Law No. 14025 as an important step towards aligning Ukrainian tax legislation with international standards of transparency and information exchange (OECD, EU, FATF).

 

The draft law will contribute to enhancing tax fairness, integrating Ukraine into the international financial infrastructure, creating equal conditions for business operations, and preventing money laundering.

 

ITU has actively contributed to refining the provisions and promoting Draft Law No. 14025, providing expert input and facilitating dialogue between representatives of the IT industry and government authorities. A special working group was created, consisting of leading tax experts, representatives from digital platforms, and payment systems. Together, we analysed the provisions of the draft law, identified potential risks, and developed proposals to mitigate them.

 

We have achieved significant changes, notably increasing the tax threshold for goods sold via online platforms to €2000, aligning with European approaches (DAC7, Model Rules for Digital Platforms). This will reduce administrative burdens on businesses and foster the development of e-commerce in Ukraine.

 

The adoption of Draft Law No. 14025 has positive implications for all parties involved:

• For IT companies — while the law introduces certain reporting obligations, it also minimises risks related to shadow schemes and illegal employment. This is particularly important in the context of increasing scrutiny from tax authorities. Moreover, a transparent tax system helps build trust among foreign investors and partners.
• For the state — according to expert estimates, the implementation of the provisions of the draft law will increase state budget revenues by approximately ₴14 billion.
• For the Ukrainian economy — harmonising tax legislation with international standards improves the country’s investment attractiveness, promotes competition, and stimulates economic growth.

 

The Association calls on the Members of the Ukrainian Parliament during the refinement of the draft law between the first and second readings to:

• Maintain the €2000 threshold for taxing the sale of goods as a means of ensuring compliance with DAC7, Model Rules for Digital Platforms, and reducing the administrative burden on digital platforms.
• Introduce effective measures to influence platform operators that do not comply with the Tax Code requirements, particularly those originating from countries that do not provide full and timely exchange of tax information.
• Ensure equivalence in the mechanisms of implementing the draft law between accounts opened under the Law of Ukraine “On Payment Services” and the Law of Ukraine “On Banks and Banking Activities”, particularly regarding payment operations for such accounts.
• Clarify that the Labour Code of Ukraine does not apply to the relationships between platform operators and accountable sellers regarding the provision of “personal services” as defined by the Tax Code of Ukraine.

 

After the adoption of the draft law in the first reading, IT Ukraine Association will join the working group with the Verkhovna Rada Committee on Finance, Tax and Customs Policy, the Ministry of Finance of Ukraine, business associations, IT industry representatives, and other interested parties to refine the document before the second reading, taking into account market proposals.

 

We urge Members of Parliament to consider our proposals and ensure the creation of a fair and effective tax system that will support the development of the IT industry and the economy of Ukraine as a whole.