Marketplaces will be required to report sellers’ income to the tax authorities

In 2025, Ukraine significantly changed its approach to monitoring the income of individuals selling goods and services via marketplaces. Draft legislation set for implementation will require marketplaces to report sellers’ income to the State Tax Service. This heralds a new era of digital tax supervision affecting both large platforms (OLX, Prom.ua, Rozetka, Amazon, Etsy, Instagram, TikTok) and small “non-professional” users alike.

Reasons and international context
Stronger tax control over marketplaces in Ukraine is driven by EU integration requirements, OECD Global Forum rules for automatic data exchange, and explosive e-commerce growth — experts estimate at least 30% of goods and services turnover has shifted online.

Essence of the bill: who must report and what
The draft law introduces a new taxation regime for individuals selling through digital platforms:

• The platform becomes a tax agent, not just an intermediary;
• Starting 2026, each operator must submit to the tax service an annual income report for users by January 31;
• The report includes amounts received by “reportable sellers,” their registration data, and designated account details;
• Banks must provide transaction details to tax authorities upon request.

Who is covered: “reportable seller” criteria
Changes affect individuals who:

• receive payment for goods/services online (e.g., OLX delivery, Prom payment, NovaPay etc.);
• are not sole proprietors, do not use hired labor, and are not involved in excise activities;
• do not exceed UAH 5 million annual income;
• have a dedicated account for transactions;
• are not sanctioned.

Taxes and rates
Compliant sellers (meeting requirements) pay a preferential rate: 5% PIT + 5% military levy. Others — 18% PIT and 1.5% levy. If profits bypass the rules, additional assessments and fines up to 23% of the sum may apply.

Fiscal receipt and accounting
From March 1, 2025, all payment systems that process marketplace transactions are required to provide fiscal receipts and transfer this data to tax servers. Marketplaces must identify sellers, track transaction activity, and record entry/exit and transaction nature.

What counts as “reportable activity”

• Renting residential/commercial property or vehicles
• Personal services (consulting, teaching, freelancing)
• Sale of goods, including second-hand items via dedicated platforms

Practical implications for sellers

• Even a single sale (e.g., shoes or a smartphone) via bank card is considered taxable income;
• To avoid claims, individuals must report income and pay tax, or register as a sole proprietor;
• Hiding sales or card income gets increasingly difficult — payment system and marketplace data are consolidated automatically.

Penalties for non-compliance
Platforms missing the January 31 reporting deadline may be fined up to 100 minimum wages (~UAH 800,000). Sellers may face additional assessments, fines, account blocking, and loss of preferential status.

International standards and prospects
Ukraine is synchronizing its tax system with EU and OECD practice (DAC7 directive), enabling automatic cross-border data exchange. From 2027, platform reporting will become the norm, promoting full income transparency.

Conclusions
The obligation for marketplaces to report to tax authorities is an inevitable result of the digital shift: it streamlines administration, boosts budget revenues, and minimizes the shadow economy. Online sellers should prepare in advance: open dedicated accounts, keep accurate records, process documents properly, and monitor legislative changes. Transparent accounting is now the key to safe marketplace business.

Author – Maksym Bahniuk, Head of Tax and Customs Law Practice at the law firm “WINNER”.