Legislation on 'OLX': Zheleznyak States Personal Item Sales Will Not Be Taxed

During a press briefing organized for media representatives, Yaroslav Zheleznyak, who serves as the First Deputy Chairman of the Committee on Finance, Taxation, and Customs Policy of the Verkhovna Rada of Ukraine, discussed important changes in taxation for Ukrainian citizens. According to him, the new legislation stipulates that the sale of personal items through online platforms, such as OLX, will not be taxed.

“If you are a private entrepreneur (PE) and are engaged in selling goods, this legislation does not apply to you. You will continue to operate as usual and pay taxes as before. However, if, for example, you are a PE living in Bucha and occasionally work for Uber, Bolt, or Uklon during your trips to Kyiv, you previously had to pay a 23% tax on that income. Under the new rules, you will not need to submit reports or deal with bureaucracy—the platform will automatically withhold 5% tax and 5% military levy and will handle the declaration itself. Thus, your tax burden will decrease by 13%,” Zheleznyak explained.

The deputy emphasized that these new changes will be convenient for citizens. “No one is charging you the single social contribution (SSC), and you will not face any claims regarding tax legislation—the platform does all the work,” he noted.

However, the situation changes when it comes to selling goods through OLX. “If you plan to systematically sell goods through marketplaces where money goes through OLX, Prom, Rozetka, or other sites, you have two options. The first is to register as a PE and pay 6.5% in taxes along with the military levy. The second option is to take advantage of the new rules: if you sell goods worth more than 2000 euros, specifically new items, the platform will withhold and pay 10% in taxes if you do not wish to be a PE,” the deputy added.

Zheleznyak also stressed that the changes do not apply to the sale of used items. “Therefore, this legislation currently does not affect citizens at all, creating simpler and more beneficial conditions, reducing tax burdens and bureaucracy. It creates a 13% relief for many. We believe that this will gradually increase the tax base: it will become more advantageous for people to work transparently and avoid any problems,” he emphasized.

The politician also noted that the law will not take effect immediately after its adoption and signing. “At best, this will happen approximately in a year and a half, after all agreements are signed and a number of other procedures are completed; this is a lengthy governmental process,” Zheleznyak explained.

It is worth recalling that the Verkhovna Rada has already supported in the first reading another bill from the International Monetary Fund (IMF) package No. 15111-d, which concerns the taxation of digital platforms. These changes could significantly impact the online sales market in Ukraine, simplifying procedures for sellers and reducing their tax burden.

For additional information and news, join our channels on Telegram, Instagram, and YouTube.