Tax Authorities Will See Income Earned Through Uber, Glovo and Airbnb: Ukrainian Parliament Adopts DAC7 Rules
The Ukrainian Parliament has adopted Draft Law No. 15111-d, introducing the OECD DAC7 framework on the automatic exchange of information regarding income earned through digital platforms.
The new rules are not limited to international tax information exchange. They also establish a new tax regime for certain types of income earned by individuals through digital platforms.
THREE KEY CHANGES
1. DAC7 and International Exchange of Information
Ukraine is joining the international system for the automatic exchange of information on income earned through digital platforms.
Under the new framework, the Ukrainian tax authorities will be able to receive information from foreign jurisdictions regarding income earned by Ukrainian tax residents through digital platforms and, in turn, share similar information with other countries regarding their residents.
2. New Obligations for Digital Platforms
Digital platform operators will be required to:
• identify users and sellers;
• collect information on their income;
• register with the Ukrainian tax authorities; and
• submit annual reports.
3. New Tax Regime for Individuals
A special tax regime will be introduced for certain categories of individuals earning income through digital platforms.
Eligible individuals will be subject to a 10% personal income tax rate. In such cases, the platform operator will act as a tax agent, withholding and remitting the tax on behalf of the individual.
Who Will Be Affected?
The new rules may affect both digital platform operators and individuals earning income through such platforms.
In practice, the rules are relevant for services such as Bolt, Uber, Uklon, Glovo, Airbnb, online marketplaces, and other digital platforms facilitating:
• sale of goods;
• provision of services;
• rental of real estate; and
• rental of vehicles.
What Will Change for Platforms?
Platform operators will be required to:
• perform due diligence and identify sellers and service providers;
• collect and retain information on users’ income;
• register with the Ukrainian tax authorities; and
• submit dedicated annual reports.
At the same time, online classified advertising boards that merely display advertisements or information about goods and services without participating in the transaction process will generally fall outside the scope of the new rules.
Simplifications for Individuals
The draft law introduces several practical simplifications:
• sales of personal items through platforms up to EUR 2,000 per year will not be subject to taxation;
• in many cases, individuals will not be required to file personal income tax returns in respect of such income; and
• tax calculation and payment will be handled by the platform operator.
When Will the New Rules Take Effect?
Most provisions are expected to become effective on 1 January 2027.
The first international exchange of information is expected to take place in 2028 with respect to the 2027 reporting year.
By the end of 2026, platform operators should assess the impact of the new rules on their business and prepare the necessary procedures for user identification, data collection and reporting.
Conclusion
The new regime is not only about taxation but also about increasing transparency of income earned in the digital economy and integrating Ukraine into the international tax information exchange framework.
For platform operators, this means new obligations relating to data collection, verification and reporting. For users, it means a significantly higher level of tax transparency for income earned through digital platforms.