Ukraine’s Parliament has proposed a draft law allowing digital platforms to offer a EUR 2,000 annual sales exemption from certain taxes. The measure, introduced by the Committee on Finance, Taxation, and Customs Policy, will be monitored by the State Tax Service to ensure compliance. This change aims to support small businesses and reduce the tax burden on digital transactions.
The exemption, outlined in draft law No. 14025, is designed to provide relief to small businesses operating through digital platforms. By setting a EUR 2,000 annual limit, the proposal seeks to balance tax obligations with the need to foster growth in the digital economy. The State Tax Service will play a crucial role in tracking compliance, ensuring that businesses adhere to the new regulations.
Chairman Danylo Hetmantsev, head of the Committee on Finance, Taxation, and Customs Policy, emphasized the importance of this measure in promoting economic activity. He stated that the new tax exemption will help local businesses remain competitive in an increasingly digital market. The initiative reflects Ukraine’s broader efforts to modernize its tax framework and adapt to the challenges of the digital age.
This proposal is part of a broader strategy to simplify tax compliance for small businesses and reduce the administrative burden associated with digital transactions. By implementing this exemption, Ukraine aims to create a more favorable business environment while maintaining fiscal responsibility. The impact of this change could be significant, particularly for small and medium-sized enterprises that rely on digital platforms for sales.
The introduction of this draft law marks a significant step in Ukraine’s tax policy reforms. As the nation continues to navigate economic challenges, such measures are seen as essential for stimulating growth and fostering innovation. The upcoming legislative process will determine the final shape of this policy, with potential implications for businesses and the overall economy.