14 November 2026
(IMAGE: AI)
Starting January 1, 2027, new rules for taxing income earned through digital platforms will take effect in Ukraine. These rules will apply to the sale of goods, the rental of property, and the provision of services through online platforms. Let’s take a closer look at who will have to pay, how much they’ll owe, who will withhold taxes, and what user data the State Tax Service will receive.
Starting January 1, 2027, the new tax rules will apply to income earned by individuals through digital platforms. The law covers four types of activities: the sale of goods, the rental of real estate and parking spaces, the rental of vehicles, and the provision of personal services. The State Tax Service cites the sale of goods through OLX and Prom as examples, while the Ministry of Finance also includes transportation, delivery, and housing rental services, specifically Bolt, Uklon, Airbnb, Glovo, and Uber.
Under the law, a digital platform is a website, app, or other software that connects sellers or service providers registered on it with other users for the sale of goods, rentals, or the provision of services. For example, a person creates a seller account, lists a product or service, and the platform helps find a buyer or customer and facilitates the transaction between them. However, money does not necessarily have to pass through the platform itself: payment can take place directly between the buyer and the seller or service provider.
However, not every website through which a person learns about a product or service is considered a digital platform. The law explicitly excludes services that, without further involvement in the transaction, merely process payments, display information or advertisements, or redirect users to another website. In other words, a standard advertising platform or a website with a link to a third-party service does not fall under these rules.
The concept of personal services encompasses more than just work performed directly online. The law also covers services that are actually provided offline, provided the order was arranged through a digital platform. These may include, for example, transportation, delivery, repairs, or other work performed at the user’s request. However, a standard money transfer between two individuals does not, in and of itself, mean that the new rules for digital platforms apply to it.
Starting January 1, 2027, income from the sale of goods via digital platforms will not be included in taxable income if it does not exceed the equivalent of 2,000 euros per calendar year. The State Tax Service explains this rule, using as an example the opportunity for citizens to occasionally sell their own used items through online marketplaces without paying tax. To apply the rule, the amount will be converted into hryvnia at the official exchange rate of the National Bank as of January 1 of the relevant year.
If annual income from the sale of goods exceeds 2,000 euros, the 10% rate will apply only to the amount exceeding this limit, not to the total income received.
The tax-free threshold applies specifically to income from the sale of goods. It does not apply to money received through digital platforms from renting real estate or vehicles, or from providing services. Different tax rules will apply to these types of income.
For income earned through digital platforms that does not qualify for the tax exemption, the base special rate will be 10% of the personal income tax. This rate applies if a person’s annual income from such activities does not exceed 834 times the minimum wage set as of January 1 of the relevant year. No additional military surtax is payable on income taxed under this special regime.
Not all platform users will automatically be eligible for the 10% rate. An individual must be a resident of Ukraine, must not use hired labor for such activities, must not be subject to sanctions, and must not sell excise goods through the platform. In addition, they must use a platform whose operator is registered in accordance with the requirements of the Tax Code, have an account with a Ukrainian bank or a non-bank payment service provider authorized by law, provide the account details to the platform operator, and receive payments for such activities through that account.
If annual income exceeds 834 times the minimum wage, the 23% tax rate will apply only to the amount exceeding that threshold, not to the total income earned for the year. For example, if the statutory threshold is, say, 8 million hryvnias and a person earns 8.5 million, the first 8 million will be taxed at a rate of 10%, and the excess of 500,000 hryvnias will be taxed at a rate of 23%.
The 23% rate will also apply if a person no longer meets the conditions for the 10% rate. The right to the 10% rate is lost as of the first day of the quarter in which the requirements were violated and may be reinstated after the violation is remedied, but not earlier than January 1 of the following year. Income received during this period must be included in the annual tax return, and the individual must independently pay a 23% tax on it, minus the amount already withheld by the platform.
It is also important to note the basis on which the tax is calculated. The tax base is not limited to the money that the seller or service provider actually receives after all deductions. It also includes commissions, fees, and taxes that the platform operator has withheld or charged. In other words, the service fee itself does not reduce the amount of income used to calculate the tax.
Under the new rules, the digital platform operator that generates income for an individual will act as the user’s tax agent. It is the operator’s responsibility to calculate the tax, withhold it from the user’s income, and remit it to the government. This applies to both Ukrainian and foreign platform operators, provided they operate in accordance with the rules established by law. Therefore, under normal circumstances, the user will not have to calculate and remit the tax to the government on their own after each transaction. At the same time, in certain cases—particularly after losing eligibility for the 10% tax rate—an individual will have to declare their income and pay the additional tax themselves.
However, the platform is not required to transfer the money for the goods or services to the seller itself. If the platform knows the amount of compensation or can reasonably determine it, the income is considered to have been accrued by the platform even if the buyer paid the seller directly. In such a case, the agreement with the platform may stipulate that the operator will withhold the required amount itself or that the seller will transfer the funds to the operator for subsequent payment of the tax to the government.
For the 10% tax rate to apply to a user’s income, the user must provide the platform operator with the details of at least one account at a Ukrainian bank or a relevant non-bank payment service provider. Accordingly, payments for activities on the platform must be made through this account. If a person works through multiple platforms, the account details must be provided to each of their respective operators.
Separate rules will apply to sole proprietors and other self-employed individuals. If a person is registered on the platform as a self-employed individual and receives income from it, the operator will not withhold tax at the new rate. Such income will be taxed according to the standard rules applicable to sole proprietors or other self-employed individuals. A sole proprietor’s income from activities on digital platforms will also be included in the overall annual income limit for eligibility under the simplified tax system.
The €2,000 tax-exempt limit provided for the sale of goods does not apply to other types of activities conducted through digital platforms. Therefore, income from renting out housing or a car, freelancing, repairs, transportation, and other services cannot be exempt from taxation simply because it did not exceed this amount during the year.
Please note a specific detail regarding real estate rentals. If an apartment, house, non-residential space, or parking space is rented out through a digital platform, the rules for digital platforms will apply to such income starting January 1, 2027. However, if an individual rents out residential or non-residential real estate—or a portion thereof—directly to another individual who is not self-employed, outside of a platform, new rules introduced by the same law will take effect as of October 23, 2026: the personal income tax rate has been reduced from 18% to 5%, while the military surtax remains at 5%. In the latter case, the owner declares the income and pays the taxes themselves.
If a person sells goods through several digital platforms, the €2,000 tax-exempt limit does not apply separately to each one. Total sales revenue for the calendar year will be taken into account. In other words, it won’t work, for example, to sell 1,500 euros’ worth of goods through one platform and another 1,500 euros’ worth through another and assume that the limit hasn’t been exceeded.
Similarly, at the end of the year, any amount exceeding the threshold of 834 minimum wages will be taken into account: a 23% tax rate will be applied to the excess amount. If the income or tax already withheld is denominated in a foreign currency, it will be converted into hryvnia at the official exchange rate of the National Bank as of January 1 of the relevant year.
After the calculation, the State Tax Service will send the individual a tax notice-decision specifying the amount due and a detailed calculation. It must be mailed or delivered by July 1 of the year following the reporting year. Upon receipt of the notice, the individual will have 60 days to pay the specified amount.
Starting in 2027, digital platform operators must collect information about users who earn income through their platforms and report this information annually. For individuals, this includes, in particular, first and last name, residential address, tax identification number, date of birth, and country of tax residency. The report will also include the bank or payment account number known to the platform. Separately, the operator will specify the amount of compensation received and the volume of transactions for each quarter, as well as any fees, commissions, and taxes withheld.
For real estate rentals, the platform will additionally provide details about the property itself. The report will include the property’s address and, if available, its registration number, as well as the amount of income received and the number of rental transactions. The operator will also specify the type of property and, if the relevant information is available, the number of days during which it was rented out.
For their part, users must provide the platform with the information and documents necessary for reporting. If, after two reminders, the user fails to do so within at least 60 days of the request, the operator will be required to terminate the user’s account, block access to the platform, or suspend payments until the required data is provided. By January 31 of the following year, the platform must also provide the user with the information it included about them in the report.
There is a separate exception for small sales of goods. If a person made no more than 30 sales through a single platform in a year, totaling up to 2,000 euros, and did not engage in any other activities through that platform, the operator will not include detailed information about that person in the main report. At the same time, the platform will still submit information about the non-taxable income received to the State Tax Service separately. It is important to note that the 30-sale limit applies specifically to reporting: the number of sales does not affect the tax exemption for income up to 2,000 euros.
The new rules also apply to foreign services. Foreign operators that will act as tax agents in Ukraine must register with the State Tax Service. There are two possible scenarios regarding reporting. If a foreign operator files reports in a country that exchanges such data with Ukraine, the State Tax Service will receive information about the income of Ukrainian residents from that country’s tax authorities. If no such exchange exists, a foreign operator subject to Ukrainian reporting rules will submit data directly to the State Tax Service.
Ukraine acceded to the Multilateral Agreement on the Automatic Exchange of Information on Income from Digital Platforms on October 29, 2026. The first reporting period will be 2027, and the first data exchange between Ukraine and other countries is scheduled for 2028. Neither platform operators nor foreign countries will submit income information for 2026 to the State Tax Service.
Олег Пархітько