Parliament proposes tax changes for telecom market


On February 26, 2019, the Verkhovna Rada of Ukraine registered Bill No. 10093 “On Amending the Tax Code of Ukraine (regarding taxation of the supply of international telecommunication and international roaming services provided by Ukrainian telecommunications operators in favor of foreign telecommunications operators)”, the purpose of which is to support the development of the IT industry .

The bill envisages bringing some provisions of the Tax Code of Ukraine regarding value added tax in accordance with the principle of neutrality of tax legislation (clause 8.1.8 clause 4.1 of article 4 of the TCU), as well as the principles of Council Directive 2006/112 / EU “On general system of value added tax ”(Article 353 of the Association Agreement between Ukraine).

In particular, it is proposed to recognize international communication services as a VAT tax object in order to increase the competitiveness of Ukrainian telecommunications operators in the international communications market, establish lower rates for international communications and roaming services during the stay of Ukrainian citizens in the EU member states, increase the volume of export operations and accordingly, foreign exchange earnings to Ukraine, as well as the creation of new investment incentives for the telecommunications industry.

In general, the adoption of this bill, according to its developers, will lead to accelerated integration of Ukraine into the European digital space.