New Tax on OLX

A new draft law regarding the taxation of income received through digital platforms like OLX, Prom, and Rozetka is being actively discussed in Ukraine. The public has many concerns about this potential “OLX tax” and how it may affect ordinary individuals selling personal belongings. Let’s break down the details and share legal advice from the Winner team.

Essence of the Draft Law:

• The Cabinet of Ministers has submitted a bill to Parliament introducing a new taxation procedure for digital platforms. These platforms will be required to report all user transactions and withhold taxes from sellers of goods and services.
• A proposed tax of 5% personal income tax (PIT) plus 5% military levy — totaling 10% of the income received through platforms.

Who Is Affected:

• Not only entrepreneurs but also individuals who sell goods, rent out property or vehicles, or provide services through platforms.
• For occasional, non-systematic sales of personal items, a tax-free threshold is proposed.

Risks and Legal Nuances:

• If an individual conducts more than 3 sales per year or earns more than €2,000, they must open a separate bank account to receive platform payments.
• Failure to comply may result in a higher tax rate — up to 23% (18% PIT + 5% military levy).
• Businesses operating on platforms without registration will be subject to mandatory taxation.

What to Expect Next:

• The Parliamentary Committee on Finance promises to protect regular citizens who occasionally sell their belongings.
• The bill is still being finalized, and specific rules may change, including the tax-free limit and sale frequency criteria.

Legal Advice from Winner:

• Verify your information — the final law has not yet been adopted.
• Evaluate your activity — if sales become systematic, taxes may apply.
• Open a separate account if you exceed 3 sales or €2,000 annually.
• Contact a lawyer — the Winner team is ready to help you assess your risk and handle tax documentation.

Conclusion:
Taxation of online sales is still being legislated. If you’re unsure about your case or want to minimize risks, reach out to the Winner legal team — we are always on your side.