Ukrainian internet providers increased tariffs by 10-30%: what to expect next
18 October 2024 13:22
Tariffs for Internet services have started to rise in Ukraine. Some providers have increased tariffs by 10-30%. This was reported by media expert Oleksandr Glushchenko on Kyiv24 TV channel, "Komersant Ukrainian" reports
According to the media expert, on average, the market has seen a 10-30% increase in prices for Internet services. However, according to Glushchenko, these funds will not be used to improve services.
“The biggest problem is that this money will not be used to buy batteries or develop networks. This money will be used to administer the transition to a common system,” he said.
Glushchenko stressed that the big problem is that the tax authorities have unilaterally closed a lot of individual entrepreneurs.
“And, as you can see, someone closed down, someone switched to the general system, and someone gave up on it all and provides the service “in the black,” he added.
As previously reported by 
, almost half a thousand Ukrainian Internet providers have applied to cease operations after the tax changes for them.
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What is being done to internet providers
The State Tax Service has long been considering the idea of transferring internet service providers to the general taxation system, but has only decided to do so now. In the summer, the head of the Verkhovna Rada’s Finance Committee, Danylo Hetmantsev, made a high-profile statement. He stated that the state loses about UAH 3 billion a year due to the simplified taxation system used by small Internet providers.
At the same time, the Tax Service began sending letters to Internet providers demanding that they switch to the general taxation system from 1 October. In case of refusal, they are threatened with cancellation of their registration.
In fact, the ban on Internet providers operating under the simplified taxation system was introduced on 1 January 2022, but, presumably due to the full-scale war, it was not implemented. Thus, the Tax Code does not prohibit companies from KVED 61.10 that provide fixed-line internet services from operating under the simplified taxation system. However, it does prohibit those engaged in the maintenance and operation of networks. On 1 January 2022, the Law on Electronic Communications, adopted in 2020, came into force. According to this law, all companies that provide communication services must simultaneously perform maintenance and operation of networks. This means that these companies cannot operate under the simplified taxation system.
As of 4 October 2024, the NCCEC’s “register of suppliers of electronic communication networks and/or services” contained 4,891 suppliers.
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