Ukraine Approves Marketplace Tax Law as Digital Platforms Become Tax Agents

Ukraine Marketplace Tax legislation has passed parliament, introducing EU-style rules that make digital platforms responsible for withholding taxes on income earned through services such as OLX, Uber, Uklon, and Glovo.

The IMF-backed reform is designed to increase tax transparency, modernize Ukraine’s digital economy, and align the country with European regulatory standards.

Ukraine’s parliament has approved landmark legislation that will fundamentally change how income earned through digital platforms is taxed, bringing the country closer to European Union standards while fulfilling a key commitment under its cooperation program with the International Monetary Fund (IMF).

The Verkhovna Rada passed draft law No. 15111-d in its second reading with the support of 241 lawmakers. The legislation introduces a new framework for taxing income generated through digital marketplaces and online platforms, including ride-hailing, delivery, and e-commerce services.

The measure was one of the structural benchmarks agreed upon between Ukraine and the IMF as part of the country’s ongoing economic reform agenda. The approval of the law removes another obstacle to future international financial assistance and demonstrates Kyiv’s commitment to modernizing its tax system.

How the New Marketplace Tax Works

The law targets income earned by individuals through digital platforms such as OLX, Uklon, Uber, and Glovo, among others. Under the new rules, digital platforms will act as tax agents, meaning they will be responsible for collecting, withholding, and reporting taxes on behalf of users who generate income through their services.

This approach mirrors regulations already implemented across the European Union, where digital platforms increasingly serve as intermediaries between taxpayers and government authorities.

The legislation aims to improve tax transparency, reduce the shadow economy, and ensure that income earned through online platforms is properly reported and taxed.

According to Ukrainian lawmakers, the final version of the bill received broad support from business associations after extensive consultations and revisions.

Implementation Expected After 2027

Member of Parliament Yaroslav Zhelezniak noted that although the law formally provides for implementation no earlier than January 2027, practical enforcement will likely take longer.

According to Zhelezniak, Ukraine must first establish information-sharing agreements, develop technical infrastructure, and create mechanisms for data exchange between platforms and tax authorities. As a result, the system may not become fully operational until 2028.

This delayed implementation timeline is expected to give businesses, digital platforms, and government agencies sufficient time to prepare for compliance requirements.

IMF Cooperation and Economic Reform

The approval of the marketplace tax law comes amid broader discussions between Ukraine and the IMF regarding economic reforms and fiscal sustainability during wartime.

The legislation is viewed as an important step toward strengthening public finances while aligning Ukrainian regulations with international standards. Analysts note that digital platform taxation has become a growing priority worldwide as online commerce and gig-economy employment continue to expand.

The law’s passage also follows reports that Ukraine and the IMF agreed to postpone consideration of separate legislation concerning taxation of international parcels and the removal of duty-free exemptions on shipments valued below €150.

With the marketplace tax bill now approved, Ukraine appears well-positioned to secure the next IMF disbursement, reportedly worth approximately $686 million.

For international observers, the reform highlights Ukraine’s continuing effort to modernize its economy, improve tax collection, and integrate more closely with European regulatory frameworks despite the ongoing challenges of war.

EMPR