The tax on OLX has been eased, but everyone will have to pay: what changes have taken place

At the beginning of the discussion, the Verkhovna Rada of Ukraine adopted a draft law on taxation of income received through digital platforms. Dubbed the “OLX tax”, this document passed the first reading after significant changes in the concept.

The project has become much softer, as some of the most controversial provisions are excluded from it, in particular, the requirement to open special bank accounts and the access of tax authorities to bank secrets. However, the essence of the legislative initiative remained: income from the sale of goods and the provision of services through online services will be taxed.

According to the new rules, a tax-free limit of 30 transactions per year with a maximum amount of 2,000 euros is introduced. If a citizen does not exceed these limits, his data will not be sent to the tax authorities, and his sales will not be subject to taxation. It is important to note that the law does not cover the sale of used items – it is only about new goods and regular activities.

A preferential tax rate of 5% plus military levy is introduced for those who earn income from digital platforms above the prescribed level. The tax service will automatically calculate the liability based on the data received from online services, so it will not be necessary to submit a declaration.

A significant innovation will be the fact that online services themselves (such as marketplaces, delivery services, rentals and taxis) will become tax agents. This means that they will be required to collect information about users’ income and transfer it to the government, and in some cases – automatically withhold taxes.

This draft law also aims to legalize persons who actually do business online, but formally remain ordinary natural persons. At the same time, one-time sales of personal items or episodic transactions will not be subject to additional tax obligations.

Approval of the new legislation is expected in 2027, and actual payments will begin in 2028, based on the previous year’s data.

Experts believe that these changes may affect market prices: some sellers may compensate for the new tax by increasing the cost of goods and services. However, the results will depend on demand, and it is unlikely that there will be a massive trend towards shadow trading.

This initiative is part of the state’s gradual transition to a more transparent model of control of online income, in exchange for which a reduced tax rate is offered, which should encourage the self-employed to work legally.