The government has supported a draft law on the exchange of income data with digital platforms

The year 2025 has become a landmark for Ukraine’s financial system and e-commerce in the context of global digital integration. On August 27, the government supported a bill that opens a new chapter in the interaction of the state, business, and users of digital platforms—automatic exchange of income data received via platforms like Uber, Bolt, Airbnb, Booking, Glovo, OLX, and so on. This step is strategic for aligning Ukraine’s tax system with EU, OECD, and IMF requirements by implementing the EU DAC7 Directive and OECD digital reporting recommendations.

Background of the Draft Law: European Integration and Combating the Shadow Economy
Implementation of tax data exchange became part of Ukraine’s international commitments as a candidate for EU membership, in parallel with financial cooperation with the IMF and OECD. The main aim is to reduce tax evasion in the digital sector and ensure transparent financial flows. Before this law, much of the income generated via digital services remained “shadowed”—especially in short-term rentals, freelancing, ride-sharing, delivery and online trading sectors.

The New Model and European Experience
The bill amends the Tax Code and other acts to enable automatic international exchange of information on income earned on platforms. The bill is adapted according to EU Council Directive DAC7 (2021/514) and OECD model rules, already applied in EU member states. Similar systems in Europe ensure transparency and accountability in digital services and e-commerce.

Who Is Covered by the Law?
All digital platforms on which users earn—both Ukrainian and international operators (Uber, Glovo, Bolt, Airbnb, OLX, etc.)—if the user is a Ukrainian tax resident.
Platforms include ride/passenger services, short-term rentals, freelancing, food delivery, online sales.

What Changes for Sellers and Platform Users?
Information about individuals’ incomes (including contractors, landlords, drivers, sellers, and freelancers) will be automatically transmitted from platforms to Ukraine’s Tax Service. Ukrainian tax officials, in turn, will transmit data about non-residents’ incomes (from Ukrainian platforms) to their foreign counterparts.
Instead of filing each declaration, the platform operator acts as the tax agent: it reports the income, withholds, and pays personal income tax (PIT).
For people with small, irregular incomes (e.g., one-off sales), taxation does not apply.
For regular activity/accounts, the PIT rate is 5%; for large volumes or violations, the standard 18%.

Administrative Changes for Platforms
Operators are required to:

• Register with regulatory authorities, introduce user identification and report incomes.
• Provide structured information to the Tax Service, including IDs, bank details, residence address.
• Inform users about reporting, allowing mechanisms to challenge or supplement data.
• Update IT systems, compliance policies, enhance legal due diligence and amend privacy policies as per new standards.

Exceptions, Data Protection, and Specific Cases
The law provides exceptions for those making minor, ad hoc sales, small transaction amounts, or single dealings.
Personal data handling must comply with GDPR and OECD standards, including access and correction rights.

Market Impact and Expected Effects

1. Increased budget revenue—hidden income becomes visible to the tax service, boosting PIT and SSC collection.
2. Equal rules for Ukrainians and non-residents—a unified tax model for all platform users.
3. A “white” digital economy—system-level, not fragmented, market control and elimination of “grey” freelancing and online sales.
4. New challenges for platforms—IT investments, staff training, legal adaptation to transparent reporting.
5. Improved investment climate—compliance with OECD/EU standards makes Ukrainian businesses more attractive for international contracts.

Conclusions and Practical Advice
Automatic income data exchange in the digital sector is not only a new tax risk, but also a unique opportunity to boost trust in digital platforms, align the market with European standards, and provide protection from sanctions for shadow income.
Platforms: urgently review IT systems and contracts, conduct legal checks of entities, and develop compliance procedures tailored for the new requirements.
Users: update bank details, consult tax advisors, and keep income records even for small online sales.
Business overall: companies cannot avoid the shift to a transparent digital economy and global reporting, plus readiness for regular and automated tax inspections.

P.S.
The introduction of automatic data exchange is just the first step towards a truly open economy, where electronic compliance and transparency become tools of trust, not just bureaucracy.

Author: Ihor Yasko, Managing Partner of JSC “Legal Company WINNER“, Ph.D. in Law.