Economy

“Google tax” increased: UAH 4.2 billion was transferred to the budget in two months

Since the beginning of 2026, Ukraine’s state budget has received more than UAH 4.2 billion in so-called “Google tax” — value added tax paid by foreign companies for providing electronic services to Ukrainian users. This was reported by the State Tax Service, according to "Komersant Ukrainian".

According to the State Tax Service, this is UAH 700 million more than in the same period last year. In January–February 2025, the budget receivedUAH 3.5 billion in such revenues.

Who pays the tax

These are non-residents — international digital companies that sell online services to Ukrainian individuals. They are registered as VAT payers in Ukraine and pay tax at the standard rate of 20%.

According to Lesya Karnaukh, acting head of the tax service, in the first two months of the year alone, such companies paid:

• 38.5 million euros
• $52.1 million

Among the largest taxpayers are global digital platforms:

• Apple
• Google
• Valve
• Meta
• Sony
• Etsy
• Netflix

Currently, 151 foreign companies are registered in Ukraine as VAT payers for the provision of electronic services.

Why was the “Google tax” introduced?

The law on taxation of digital services was passed by the Verkhovna Rada in June 2021. Its main idea is to level the playing field for Ukrainian businesses and large international technology companies.

Prior to this, foreign services could sell digital products to Ukrainians without paying VAT in the country.

Digital taxes are on the rise

Revenues from digital services are gradually growing along with the development of the online economy.

At the end of 2024, international companies declared UAH 12.6 billion in tax liabilities under this mechanism.

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The tax service believes that the “Google tax” has become an important element of digital economy taxation and an additional source of budget revenue.

The tax is paid by foreign companies that sell electronic services to Ukrainian users, ranging from advertising and subscriptions to gaming platforms and digital content. These are non-residents who are registered as VAT payers in Ukraine.

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