The Verkhovna Rada of Ukraine has introduced an obligation to pay value-added tax (VAT) for Facebook, Netflix, and Google.
As reported by Censor.NET.
A total of 283 parliamentary members backed the respective bill 4184 in principle when 226 votes were enough to pass the decision, the Ukrainian News Agency reports.
The bill offers to add the Tax Code of Ukraine with the terms on cancellation of taxation of revenues received by non-residents in a form of payments for production and/or distribution of ads, and terms as for the improvement of the order of taxation with VAT of rendering of e-services by non-residents to individuals.
In particular, the document offers:
- to exclude the term according to which residents, when paying income to non-residents for the production and/or distribution of advertising, must pay tax at the rate of 20% of the number of such payments at their own expense;
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- to clearly define that for documents certifying the fact of delivery of services drawn up in electronic form, the date of execution of such a document is the date of compilation of such an electronic document;
- to determine the list of electronic services; - to exempt from taxation with value-added tax the supply of electronic services by providing access to electronic educational (training) resources as part of the provision of educational services; - to include non-residents in the list of persons who are registered as payers of value-added tax; - to establish the rules for determining the place of supply of electronic services (B2C); - to establish the form and determine the procedure for sending a tax notification to a non-resident and a complaint about such a decision; - to define a simplified procedure for registering a VAT payer for non-resident suppliers, which can be carried out remotely in electronic form on a specially developed web portal; - to determine the rules of tax accounting for value-added tax for non-residents providing electronic services to individuals, the place of delivery of which is located in the customs territory of Ukraine; - to exempt non-residents from the obligation to register tax invoices; - to provide for the payment of the tax liability for a non-resident in foreign currency. As Ukrainian News earlier reported, the Verkhovna Rada of Ukraine intends to envision responsibility for fraud with VAT as a standalone type of a criminal offense in the Penal Code of Ukraine. The Economic Security Bureau will be responsible for investigating such cases.