Ukraine introduces sweeping tax reforms targeting digital platforms and e-commerce, implementing a preferential 5% income tax rate for gig workers and VAT on all international parcels from 1 January 2027, in line with EU standards to combat the shadow economy and fund reconstruction efforts.
Ukraine’s Cabinet of Ministers approved three draft laws on 30 March 2026, introducing significant tax reforms. These changes aim to bring shadow economy activities into the formal sector, create fair competition, and generate revenue for post-war reconstruction while aligning with EU and OECD standards.
Digital platform reporting and information exchange (DAC7)
Starting 1 January 2027, Ukraine will implement international automatic exchange of information on income earned through digital platforms, following the OECD Model Rules and EU Directive DAC7. This applies to platforms like Bolt, Uber, Airbnb, and others offering services, goods sales, or property rentals.
Platform operators must register with tax authorities, identify accountable sellers, and submit annual reports by 31 January each year.
Simplified tax regime for platform workers
To encourage individuals working through digital platforms to declare income, the government introduced a preferential 5% personal income tax rate, significantly lower than the standard 18% rate.
Platform operators will act as tax agents, automatically withholding and remitting taxes. This simplified regime applies to individuals who work without employees, aren’t registered as sole proprietors, use separate accounts for business activities, and earn up to approximately UAH 7.2 million annually (834 times the minimum wage as of 1 January 2026).
Non-commercial, one-time sales of personal items generating less than EUR 2,000 yearly remain tax-exempt, and no separate bank account is required if goods sales stay below EUR 2,000 annually.
VAT on international parcels
From 1 January 2027, all imported goods in postal and express shipments will be subject to VAT, regardless of value. This mirrors EU practices implemented in 2021 and eliminates the competitive advantage foreign sellers previously enjoyed.
Electronic platforms will automatically calculate and include VAT in the purchase price, with the tax transferred directly to Ukraine’s budget. Non-commercial gifts or personal items valued up to EUR 45 remain exempt from taxation. The reform addresses customs value underreporting schemes while ensuring Ukrainian businesses compete on equal terms with international sellers.
All three legislative changes underwent extensive consultation with business associations, international companies, and economic experts before approval.
