20% VAT will now be paid by companies that have more than 1 million hryvnia of turnover on consumers in Ukraine.
In January Ukraine came into force the law on & # 171; tax on Google & # 187;, according to which the services of foreign Internet companies and social networks, video platforms and game services, cloud storage and advertising services in internet & # 8212; will be subject to 20% VAT in our country. Some industry giants pay for such funds themselves, while others transferred the entire cost to users, Chronicle.info reports with reference to RBC-Ukraine.
As explained by the expert, partner of the tax practice of one of the law firms Gennady Voytsitsky, you pay to watch ads on Facebook, while watching on Netflix, in order to store data in iCloud (an Internet service with support for push technologies from Apple).
& # 171; Actually, through this tax on electronic services, the mechanism is introduced & # 8212; how to tax e-service providers & # 187 ;, & # 8212; he said.
It is noted that & # 171; Google tax & # 187; in fact, it will affect much more areas: social media services, video services, cloud storage, gaming services or services. So, 20% VAT will now be paid by companies that have more than 1 million hryvnia of turnover on consumers in Ukraine.
The Verkhovna Rada draws attention to the fact that an exception was made only for educational services & # 8212; they will not be subject to such a tax.
The overwhelming majority of companies, even before the law came into force on January 1, warned about a new tax on their services, while the very approach & # 8212; who exactly will pay it & # 8212; for many it differs.
So, some foreign large Internet companies actually pay for these funds out of their own pockets, while others have completely transferred the cost to users.
Experts on the Internet market admit that this may be a temporary situation, since the companies will begin to study the market and analyze consumer behavior for now, after which they will finally make a decision & # 8212; who will pay.
Meanwhile, & # 171; Google tax & # 187; may also affect those who do not use digital services. Thus, more and more companies place their advertisements on the Internet.