Zelensky Signs Law on Imposing 'Google Tax' in Ukraine

The President of Ukraine, Volodymyr Zelensky, has signed a law approved by Parliament on June 3 that introduces VAT for foreign companies providing electronic services in Ukraine.

According to TASS, among these companies are Google, Facebook, Viber, and others. The official website of the President states: "Volodymyr Zelensky has signed a law on the taxation of electronic services provided by non-residents." Electronic services that non-resident companies provide to individuals in Ukraine will now be subject to a 20 percent VAT. For this, non-resident companies will be included in the list of taxpayers in Ukraine.

The author of the document, Daniil Getmantsev, Chairman of the Parliamentary Committee on Finance, Taxation, and Customs Policy, reported that previously, every year, the country's budget missed out on 3 million Ukrainian hryvnias (approximately $106.5 million) just from advertising services.