- If a non-VAT-registered sole proprietor (FOP) buys electronic services from a non-resident, VAT rules may apply if the service is deemed supplied in Ukraine.
- For electronic services supplied by a non-resident, VAT is generally governed by Articles 208 and 208-1 of the Ukrainian Tax Code.
- If the non-resident is not VAT-registered in Ukraine, the FOP must calculate and pay VAT on the transaction under Article 208.
- This applies regardless of why the foreign company is not VAT-registered in Ukraine, including if its income is below UAH 1 million.
- A non-resident providing such electronic services in Ukraine without required VAT registration may face fines.
Source: od.tax.gov.ua
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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