Product discount: when to pay taxes

Press service of the State Tax Service of Ukraine, published 02 September 2026 at 15:32 Chapter: News

Discounts in stores, promotions and special offers are already a common thing. But in some cases, received discount may be considered as income for the buyer and be taxable.

The main rule: taxes depend on whether the discount is personal.

If a store or company has set a discount for all customers or for a certain group of customers on the same terms, such discount is not considered income for a person and is not taxable.

For example, it can be: seasonal sale, promotion "-20% on all products or discount that is available to all discount card holders or another public offer that any buyer can use under certain conditions.

Another situation is when the discount was provided personally to a specific person.

If product is sold to individual for less than its regular price and such discount is individual in peculiarity, the discount amount is considered additional benefit and is included in the taxable income of individual.

Such income is taxed:

- Personal income tax – 18%;

- Military levy – 5 %.

That is, not the entire cost of purchased products is taxed, but the personal discount amount. For example: store holds a promotion: product that previously cost 10 thousand UAH is now sold to all buyers for 8 thousand UAH. Such discount is not taxed. And if the price was reduced to 8 thousand UAH personally only for a specific buyer, difference of 2 thousand UAH is additional benefit and is subject to taxation.

So, the guideline is simple: general discount for buyers is not income, but the personal discount for a specific person is taxable income.

Does the buyer need to pay or declare?

If the personal discount is provided by a legal entity, it, as a tax agent, accrues, withholds and transfers appropriate taxes to the budget. The buyer does not need to pay them independently and submit annual declaration just because of receiving such discount.