In January-March 2025, foreign companies supplying IT services to Ukraine significantly increased their tax contributions. The total amount of revenue from the so-called «Google tax» exceeded UAH 3.5 billion.
In January-March 2025, foreign companies supplying IT services to Ukraine significantly increased their tax contributions. The total amount of revenue from the so-called «Google tax» exceeded UAH 3.5 billion.
According to the head of the State Tax Service of Ukraine, Ruslan Kravchenko, in the first quarter of 2025, non-residents paid 39.6 million euros and $43.4 million in VAT for electronic services provided to Ukrainian users. In hryvnia equivalent, this amount is over 3.5 billion UAH, which is 9.5 million euros and $8.9 million more than in the first quarter of 2024.
As of April 1, 2025, 121 non-residents filed tax returns. The total number of registered VAT payers among foreign companies reached 136, which is 26 more than last year.
The list of the largest payers includes Apple, Google, Meta, Valve, Sony, Netflix, Etsy, Ebay, Bolt, Wargaming, OpenAI and other international platforms that sell digital services or goods to Ukrainian consumers. Since 2022, such companies are required to register as VAT payers in Ukraine and declare income from activities in our market.
«I thank all taxpayers who support civilized work rules and pay taxes. Because this is not only about additional revenues to the budget, which are extremely necessary in times of war. Today, together, we are ensuring fair competition between Ukrainian and international companies,» Ruslan Kravchenko noted.
The so-called " Google tax " came into effect in Ukraine on January 1, 2022. It obliges foreign companies selling digital services to individuals in Ukraine to pay VAT at a rate of 20%. The mechanism allows balancing fiscal conditions for Ukrainian and foreign businesses operating in the field of e-commerce.
We previously wrote about how online giant Google is being attacked by a series of lawsuits from European price comparison sites, demanding compensation of at least €12 billion for crowding out search competitors and reducing traffic.
