Ukraine has introduced an ‘OLX tax’: what is it and who will it affect? We explain in simple terms

New rules on online earnings are on the horizon for Ukrainians. The authorities have approved a flat-rate tax of 10% for those who sell goods or provide services via popular digital platforms. Who will have to pay this tax, and who is exempt? Find out all the details and thresholds

Legal advice on doing business in Ukraine

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The Verkhovna Rada has finally passed a law introducing taxation on income earned by Ukrainians via digital platforms. The public has already dubbed this new measure the ‘OLX tax’. We explain how the new system will work, who will have to share their earnings with the state, and who can rest easy.

Who will be affected by the tax on online earnings?

The new rules will affect those who regularly earn money through popular online services. First and foremost, this applies to taxi drivers (Bolt, Uklon, Uber), people who rent out accommodation or vehicles (Airbnb), as well as sellers of goods and services on marketplaces (Prom, OLX).

Ukrainians over the age of 18 who are self-employed (without employees) and do not sell excise goods (such as alcohol or tobacco) will be able to take advantage of the new rules. An important condition: your annual earnings on such platforms must not exceed the limit of 6.7 million hryvnias.

What is the sales tax on OLX and Prom?

The main idea behind the law is to bring online earnings out of the shadows by offering people more favourable terms. Instead of the standard 23% tax burden currently applied to personal income, the state is introducing a single payment of 10%.

This amount consists of two parts: 5% personal income tax (PIT) and 5% military levy.

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Who will be exempt from the new tax on the sale of personal items?

If you simply want to free up space in your wardrobe or garage, you have nothing to worry about. The law clearly distinguishes between commercial activity and one-off sales of personal or second-hand items.

There is an exemption for sellers: if your annual income from sales via platforms does not exceed the equivalent of €2,000, you will not have to pay tax. In other words, selling an old smartphone, a pram or some books you have read will not be considered income and will not be of interest to the tax authorities.

When will the tax on OLX be introduced and do you need to file a tax return?

The tax changes will come into force on 1 January 2027. The main convenience of the new law is that people won’t have to deal with paperwork, fill in tax returns or visit the tax office. The digital platforms themselves (marketplaces, taxi and rental services) will become tax agents. They will automatically identify users, withhold the required 10% from income and transfer it to the budget themselves.

The adoption of this law is a commitment by Ukraine to the International Monetary Fund (IMF) and a step towards alignment with European legislation. The government expects that bringing the digital economy out of the shadows will generate around 14 billion hryvnias for the state annually. In wartime, all this money will be directed exclusively towards the country’s defence.

Doing business in Ukraine during the war requires an understanding of numerous legal nuances, from changes in tax legislation to the specifics of executing government contracts and protecting assets. The Visit Ukraine portal provides professional legal advice for entrepreneurs who want to develop their business in the current conditions. Experienced specialists will help you understand regulatory requirements, assess risks and find the best solutions for your business.

Request a consultation with a lawyer on the Visit Ukraine portal and get qualified support on all business issues!

Reminder! Ukraine is actively transitioning from paper employment record books to electronic ones. This is not merely a formality, but an important step towards preserving insurance records and ensuring timely pension payments. Find out what deadlines are set by law, how digitisation works, and what documents you need to submit to ensure your employment history is fully recorded.

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