How will draft law 14025 change the taxation of online sales and freelancing in Ukraine?

Bill No. 14025, known as the “OLX tax,” became a key 2025 initiative for reforming the taxation of income from digital platforms in Ukraine. Its adoption is aligned with European DAC7 rules and aims to legalize online sales, freelancing, gig-economy work, and rentals through services like OLX, Prom, Rozetka, Bolt, Airbnb, Uber, Kabanchik, and others.

Key Provisions of the Bill.  The document supplements Ukraine’s Tax Code with a new article on automatic international information exchange regarding income earned via digital platforms and introduces clear duties and taxes for “reportable sellers” and platform operators.

Tax Agent: Who and How.  Operators of digital platforms (marketplaces, taxi aggregators, freelancing, rentals): OLX, Prom, Rozetka, Airbnb, Bolt, Glovo, Uklon, and others.
They are required to collect data on users’ revenues, submit reports to tax authorities, and automatically withhold and transfer taxes to the budget.
The operator must identify “reportable sellers,” submit their registration, and provide user-specific income information.

Seller-taxpayer: Reporting Criteria and Activity Types

Covers everyone receiving income from goods sales, real estate and transport rentals, or personal services (repairs, cleaning, care, freelancing, etc.) through platforms.
If annual turnover exceeds 12 living minimums (36,300 UAH for 2025) or more than three operations are performed, a special procedure applies—mandatory separate bank account and tax accounting.

Rates and Administration Mechanisms

Up to 36,300 UAH/year (single sales)—exempt from taxation, but tax is withheld automatically and returned via annual declaration.
For higher/regular income:

• 5% personal income tax (privileged rate) if a separate account is used, no FOP registration, and within the 6.7 mln UAH limit per year.
• 18% + 1.5% military levy if conditions are unmet.

The platform operator administrates the entire process online and pays taxes for users.

Operator Duties and New Control Order

• Identifying reportable sellers, registering with the tax office, and submitting detailed financial returns for each user.
• Platform liability for violations or late disclosures reaches tens of thousands of UAH in fines.
• A public monitoring platform is created for automated reconciliation of tax, bank, and aggregator data.

Functional Features

• All payments—only through the user’s identified account.
• For cash deals made “bypassing” the platform, the seller bears responsibility and tax risk, but the operator still reports activity.

Tax-free Minimum and “Small Seller” Protection

The bill includes safeguards: occasional sales under 36,000 UAH per year or up to three operations do not require a special account or FOP registration. Full exemption applies, barring signs of “business activity.”

Government Arguments and Market Reaction

Pluses:

• Alignment with EU law, seamless DAC7 implementation.
• Automated tax administration, simplifying life for honest freelancers and occasional sellers.
• Higher budget revenues.

Critique and risks:

• “Fiscalization of routine sales”, increased control over personal data, risk of widespread informal cash transactions outside platforms.
• Technical burden on platforms: new compliance costs and liabilities.

User Scenarios

1. Rare sales—tax is withheld but refunded after yearly declaration.
2. Earnings above the limit or ongoing business—keep records, open a special account, report and expect automatic tax deductions.
3. For landlords, taxi drivers, gig workers—same transparency, online banking, and automated administration.

Conclusions: The Future of Digital Taxation.  Bill 14025 is the first major move toward unified taxation rules for digital platforms, making all interactions between citizens, platforms, and the tax service digital. It protects the “white” market segment, deters the service shadow economy, and benefits the budget, while pushing micro-businesses and the self-employed to search for optimal compliance regimes. For most Ukrainians who sell rarely, little changes; but those who earn online regularly will need to adjust their finances, keep records, and track the new rules and rates. For digital platforms, it means a new level of control, accountability, and extra investment to meet global standards.

Author: Maksym Bahniuk, Head of Tax and Customs Practice, WINNER Law Firm.
For questions regarding Bill 14025—contact for professional consultation.