American Chamber of Commerce Calls for Support of Taxation Bills on Digital Platform Income and International Packages Under 150 Euros

The American Chamber of Commerce in Ukraine has made a significant call to the members of parliament, urging them to back essential legislative initiatives that focus on the taxation of income derived from digital platforms, as well as the taxation of international parcels with a value not exceeding 150 euros. These initiatives are part of broader efforts aimed at ensuring stable revenue streams for the State Budget of Ukraine amid the ongoing state of war, as well as combating the shadow economy.

According to a statement from the American Chamber of Commerce, ensuring the stability of budget revenues and creating a level playing field for businesses are critically important for supporting the country's defense needs, revitalizing the economy, and fostering further cooperation with international partners. The Chamber emphasized its support for initiatives that contribute to reducing the shadow economy and aligning Ukrainian legislation with European Union standards.

"We urge all members of parliament to support the long-awaited reforms and adopt bills No. 15111 on amendments to the Tax Code and the law on banks and banking activities, which provide for the implementation of international automatic information exchange regarding income received through digital platforms, as well as the taxation of such income (the so-called OLX law); and bill No. 15112 on amendments to the Tax Code regarding the taxation of electronic commerce operations with value-added tax (the so-called law on tax for parcels from abroad)," the Chamber's statement reads.

Business community representatives believe that these initiatives aimed at regulating the taxation of income from digital platforms, as well as abolishing the VAT exemption for goods valued at up to 150 euros in international postal shipments, align with Ukraine's commitments under international financial assistance programs. They also demonstrate the country's readiness to implement necessary reforms.

The American Chamber of Commerce also praised the achievements of law enforcement agencies in combating the illegal production and distribution of excise goods. Notably, the recent uncovering of a large-scale illegal cigarette manufacturing operation in the Chernivtsi region was mentioned. The Chamber expressed hope for continued effective law enforcement and further major revelations that could significantly reduce the share of the shadow economy and increase budget revenues.

Moreover, Chamber members stressed the importance of eliminating tax evasion schemes associated with the artificial fragmentation of large businesses into groups of individual entrepreneurs to reduce tax burdens. "The Chamber emphasizes that the effectiveness of these measures will depend on proper law enforcement. We call on the parliament, government, and law enforcement agencies of Ukraine to intensify efforts in the fight against the shadow economy to ensure the necessary budget revenues and fair competition," concluded representatives of the business community.

It is worth noting that on March 30, the Cabinet of Ministers of Ukraine approved a package of three bills developed by the Ministry of Finance, which propose amendments to the Tax Code, and submitted them for consideration by the Verkhovna Rada. These bills aim to improve Ukraine's tax system and enhance its compliance with international standards.