"Google tax": Large international companies paid 12.6 billion UAH in Ukraine in 2024

International non-resident companies that provide electronic services to individuals in the customs territory of Ukraine declared more than 12.6 billion UAH of tax liabilities in 2024. This is equivalent to 130.6 million EUR or 151.2 million USD. The corresponding reports were submitted by 125 payers, who are participants in the so-called “Google tax” payment system.

There is a significant growth dynamics compared to 2023:

- number of registered taxpayers increased by 28 people;

- amount of tax liabilities increased by almost 5 billion UAH.

For comparison: 97 taxpayers submitted reports, declaring 8 billion UAH of tax liabilities for the same period in 2023 (105.8 million EUR and 118.9 million USD).

Among the companies that paid the biggest amounts of tax are the owners of popular Internet resources: upwork.com, netflix.com, apple.com, facebook.com, instagram.com, valvesoftware.com, etsy.com, google.com, playstation.com, aws.amazon.com, bolt.eu. Together, they declared and paid more than 10.2 billion UAH of the VAT (121.8 million EUR and 119 million USD).

In total, 131 VAT payers were registered in Ukraine among the non-residents who provide electronic services to individuals as of February 1, 2025.

Reminder! According to Article 208 Note 1 of the Tax Code of Ukraine, the non-resident companies that provide electronic services to Ukrainian individuals are required to register as the VAT payers and pay 20% VAT on provision of such services from January 1, 2022.

Obligation to register arises if the total provision amount exceeds 1 000 000 UAH during the last 12 months.

Introduction of this tax contributes to filling the budget and creates equal conditions for Ukrainian and international companies operating in the digital services sphere.