The value added taxation was introduced starting from 01.01.2022 for electronic services with provision place in the customs territory of Ukraine in case of provision of such services to individual, including individual – entrepreneur who is not registered as a tax payer, non-resident.
List of the VAT payers includes non-resident who does not have permanent establishment and provides electronic services in the customs territory of Ukraine to individuals, including individuals – entrepreneurs who are not registered as the VAT payers, including by providing access to electronic services through the electronic interface, provision of technical, organizational, informational and other opportunities, which are carried out using information technologies and systems, to establish contacts and conclude agreements between sellers and buyers and/or supplies of such electronic services under intermediary contracts on own behalf, but on the behalf of electronic services provider.
To such non-residents do not belong those who:
provide electronic services under intermediary contracts, if invoices (receipts) provided to customers of electronic services specify list of such electronic services and their actual supplier;
exclusively process payments for electronic services and do not participate in provision of such electronic services;
provide electronic services directly through their permanent representative office in Ukraine.
Obligation to register as the VAT payer arises for non-resident, if, based on the results of previous calendar year, the total amount from his / her provision of electronic services to individuals with provision place in the customs territory of Ukraine, collectively exceeds amount equivalent to 1 million UAH. This amount is calculated according to the official exchange rate of Ukrainian currency to foreign, established by the National Bank of Ukraine, effective at 0 hours on January 1 of the corresponding year.
Non-resident can voluntarily register as a tax payer (if such payer has not reached the specified amount is equivalent to 1 million UAH).
Registration of non-resident person as the VAT payer is carried out on the basis of such payer’s registration application, both voluntarily and in a mandatory manner.
Taking into account suspension of the terms according to provisions of the Tax Code of Ukraine, the non-residents, who had to register as the VAT payer and did not submit registration application until March 31, 2022, are released from responsibility provided for by the Tax Code of Ukraine.
As follows, non-residents who provide electronic services in the customs territory of Ukraine to individuals must comply with requirements of the Tax Code of Ukraine regarding taxation of provision of electronic services with value added tax and those that have exceeded amount equivalent to 1 million UAH (mandatory registration) and those who did not cross the specified amount (voluntary registration).