Ukraine Implements DAC7: New Tax Rules for Digital Platforms and Freelancers
Verkhovna Rada, Ukrainian government, supported Bill No. 15111-d in its first reading. This legislation introduces the DAC7 standard into Ukrainian law, fundamentally changing how income from digital platforms is taxed and reported.Scope of the ReformThe law applies to digital platform operators providing services for:Sale of goods (E-commerce);Provision of personal services (freelancing, delivery, etc.);Rental of real estate or transport.Core Changes:1. Platforms as Tax Agents Digital platform operators will now act as tax agents. They will be responsible for automatically withholding taxes from users' earnings and reporting this data to the State Tax Service.2. 5% Preferential Tax Rate To encourage legalization, the government introduced a preferential 5% Personal Income Tax (PIT) rate for income earned through digital platforms. This applies to self-employed individuals who are not registered as "Individual Entrepreneurs" (FOPs).3. €2,000 Reporting Threshold Occasional sales of used personal items are protected. Income up to €2,000 per yearfrom the sale of goods remains non-taxable and exempt from reporting, ensuring that non-commercial peer-to-peer transactions are not...