On June 28, 2021, Zelenskiy signed the law on “tax on Google”.
Changes in the price of advertising will affect everyone who has Ukraine in their company or personal address / Illustration REUTERS
From January 2022, Facebook ads in Ukraine will be subject to value added tax (VAT).
According to tax legislation, the rise in the cost of advertising on Facebook will be 20%. This was reported by help center Meta (Facebook) for business.
Read alsoZelensky signs law on “tax on Google”
Changes in the price of advertising will affect everyone who has Ukraine in their company or personal address, but who have not confirmed that they are registered as a legal entity or as a private entrepreneur, and have not added a VAT payer number to their Facebook advertising account.
Google Tax Law:
On June 28, 2021, President Volodymyr Zelenskyy signed amendments to the Tax Code, according to which large foreign IT companies will be required to pay value added tax on their income in Ukraine.
Foreign companies that “supply electronic services to Ukrainians” with a total amount of more than 1 million hryvnias per year will be registered in Ukraine as VAT payers.
We are talking about companies such as Google, Facebook, TikTok, YouTube, Apple, Microsoft. It is they who, after the entry into force of the law, will pay value added tax in the amount of 20% in foreign currency.
Who is exempt from paying taxes:
Operations for the supply of distance learning services via the Internet are exempted from VAT if this network is used exclusively as a means of communication between the teacher and the student.
Also, transactions on the supply of educational services by access to public educational, scientific and information resources on the Internet from the branches of knowledge and specialties in which the training of applicants for higher education is carried out are exempted from value added tax, if their implementation and provision does not require human participation.
From January 1, 2022, VAT will be canceled when Ukrainian companies pay for services for the production or distribution of advertising abroad.