"OLX Tax" Adopted: Who Will Pay Tax on Online Sales in Ukraine?

On 9 June, the Verkhovna Rada adopted a law introducing new taxation rules for income earned by individuals from selling goods and providing services through digital platforms (such as OLX, Prom, Airbnb, Upwork, etc.). The law also establishes reporting obligations for platform operators.

When do the new rules take effect?

• Upon publication – general provisions of the law.
• From 1 November 2026 – reporting obligations for platform operators become effective (subject to Ukraine joining the OECD's DPI Multilateral Competent Authority Agreement).
• From 1 January 2027 – the new taxation rules for individuals under Article 178-1 of the Tax Code enter into force.

Key changes

Starting from 2027, digital platform operators will act as tax agents. They will withhold personal income tax (PIT), remit it to the state budget, and report sellers' income to the Ukrainian tax authorities. As a general rule, individuals will no longer be required to file an annual tax return for such income.

The new regime introduces:

• 10% PIT for individuals meeting the requirements of Article 178-1 of the Tax Code;
• 23% PIT on annual income exceeding 834 minimum monthly salaries;
• A tax exemption for annual income of up to EUR 2,000 derived from the sale of goods through digital platforms. This exemption does not apply to services, real estate rentals, or vehicle rentals.

Who qualifies for the 10% tax rate?

The preferential regime applies only if all of the following conditions are met:

• the seller is a Ukrainian tax resident;
• the seller provides the platform with details of a Ukrainian bank or payment institution account;
• all payments are made through that account;
• the seller is not subject to Ukrainian sanctions;
• no employees are engaged in carrying out the platform activities;
• no excisable goods are sold;
• the platform operator is registered with the State Tax Service of Ukraine.

Failure to satisfy any of these conditions results in the application of the general taxation rules.

Which activities are covered?

The new rules apply to income derived from:

• the sale of goods;
• rental of real estate;
• rental of vehicles;
• personal services, including freelance work, tutoring, repair services, and similar activities provided through digital platforms.

The regime does not apply to sole proprietors (FOPs) operating under their existing tax system. However, if a sole proprietor registers on a platform as an individual rather than as a business, the platform may still withhold PIT under Article 178-1.

New obligations for platform operators

Platform operators must register with the State Tax Service by 1 January 2027.

From the 2027 reporting year onwards, they will be required to:

• conduct due diligence procedures to identify reportable sellers;
• submit annual reports on sellers' income;
• perform the functions of a tax agent.

For foreign platform operators that fail to comply, Ukrainian authorities may seek a court order to restrict access to the platform within Ukraine.

Penalties

The law introduces significant penalties, including:

• 20 minimum monthly salaries for failure to register as a reportable platform operator;
• 100 minimum monthly salaries for failure to submit the required reports;
• additional penalties for incomplete or inaccurate reporting and for intentional omission of reportable sellers.

For certain reporting violations committed during the first reporting year (2027), penalties will apply at 50% of the standard amount. However, this mitigation does not apply to the obligation to register as a platform operator.

Key considerations for sellers

Individuals should pay particular attention to the following:

• the preferential 10% rate is available only if all payments are received through a Ukrainian bank account disclosed to the platform;
• hiring employees disqualifies the seller from the preferential regime;
• if the platform is not registered with the Ukrainian tax authorities, the seller cannot benefit from the 10% tax rate;
• the EUR 2,000 annual tax exemption applies only to the sale of goods, not to services or rental activities.

Conclusion

The new law fundamentally changes the taxation of income earned through digital platforms in Ukraine. For most individuals, tax compliance will become simpler, as platform operators will calculate, withhold, and report the tax on their behalf. At the same time, eligibility for the preferential 10% PIT rate depends on meeting a number of statutory conditions, while platform operators will assume substantial new compliance and reporting obligations.