Ukrainians collected a record amount of “Google tax” for the quarter: Which service users paid the most?

Based on the results of the fourth quarter of 2023, non-resident companies providing electronic services declared more than 2.5 billion hryvnia for payment of the so-called “Google tax” and have already transferred 2.17 billion hryvnia of this amount to the state budget.

Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Daniil Getmantsev reported this on Telegram.

“96 submitted declarations will provide budget revenues in the amount of UAH 2.51 billion (EUR 30.1 million and $34.4 million). Compared to the third quarter, the amount of revenue increased by 421 million hryvnia,” Getmantsev wrote.

The Chairman of the Committee clarified that the largest payers of this tax in the fourth quarter of 2023 were:

• Google;
• Sony;
• Etsy;
• Apple;
• Meta Platforms;
• Wargaming Group;
• Netflix.

“For those who traditionally follow the OnlyFans service, we note that the company calculated and paid $1.27 million for the provision of services in Ukraine in 2023,” added Getmantsev.

How much “Google tax” do Ukrainians pay?

In the third quarter of 2023, the state budget received 2.09 billion hryvnia from paying the so-called “Google tax”, in the first and second quarters of last year – 1.9 billion hryvnia each. Thus, for the entire 2023, international companies providing electronic services declared for payment since the beginning of the year, international companies paid more than UAH 8.4 billion of this tax.

In 2022, the state budget received UAH 4.3 billion from the payment of the “Google tax.”

What is the “Google Tax”?

In June 2021, President Vladimir Zelensky signed Law No. 1525-IX, which introduced 20% VAT on online services that non-resident companies provide to Ukrainian users.

According to this law, foreign companies that supply electronic services to Ukrainians (Apple, Google, Netflix, Wargaming and others) are required to register as value added tax payers if the total amount from the relevant operations exceeds UAH 1 million per year.