Increase in VAT Payments from Google: Record Revenues for the Budget

Global digital market giants, including Google, are significantly increasing their value-added tax (VAT) contributions to Ukraine's state budget. In the first quarter of 2026, revenue from the tax on Google reached 4.5 billion hryvnias, marking a substantial figure for a country that is actively developing its digital economy.

This information was disclosed by Lesya Karnaukh, the acting head of the State Tax Service (STS). She noted, "The dynamics are positive: a 28% increase year-on-year. Last year, international companies paid 3.5 billion hryvnias in taxes on electronic services in the first quarter." This indicates a growing interest from international companies in the Ukrainian market and their willingness to fulfill tax obligations.

Overall, in 2026, non-residents have already paid significant amounts in taxes, with global technology companies such as Apple, Google, Valve, Meta, Sony, Etsy, and Netflix leading the way in payments. These companies actively provide electronic services to Ukrainian consumers, making them vital market participants.

Ukraine, in turn, is an attractive market for content consumption, as evidenced by the registration of 152 non-resident entities providing electronic services within the country. The tax is paid by foreign companies offering electronic services to individuals on the customs territory of Ukraine, including online advertising services, access to video and audio content, cloud solutions, software, and other digital products.

Lesya Karnaukh emphasized the importance of this process, stating, "This is about fair competition and equal rules for Ukrainian companies and international giants. It represents a significant additional resource for financing defense, social services, and economic recovery." Thus, the tax payments made by international companies are not only a financial obligation but also a contribution to the development of the Ukrainian economy.

The STS also reminded that the obligation for non-residents to register as VAT payers arises if, within the last 12 months, the volume of electronic services supplied to individuals on the customs territory of Ukraine exceeds the equivalent of 1 million hryvnias. This rule encourages companies to comply with Ukrainian legislation and pay taxes.

As previously reported, in 2024, international non-resident companies providing electronic services to individuals in Ukraine declared over 12.6 billion hryvnias (equivalent to 151.2 million dollars) in tax obligations. This indicates a growing volume of electronic services that are in demand among Ukrainian consumers.

In 2025, digital platforms such as Uklon, Uber, and Bolt may receive the status of tax agents, which will further simplify the tax payment process for foreign companies. Non-resident companies supplying electronic services to Ukrainian consumers paid 76.5 million euros and 85.7 million US dollars in VAT to the budget in the first half of 2025.

Over the first ten months of 2025, non-resident companies providing electronic services to individuals on the customs territory of Ukraine contributed 136 million euros and 165.2 million US dollars in what is commonly referred to as the Google tax. This underscores the importance of this tax for funding government expenditures and developing the country's infrastructure.