The OLX platform calls for a review of the provisions of Bill No. 14025 on the introduction of international automatic exchange of information on income received through digital platforms, and to take as an example the implementation of such rules in European Union countries.
“According to the proposed regulations, even those who sell only one book or jacket per year will be forced to pay tax or go through a complicated procedure to get a refund through the tax service. The new rules significantly complicate simple and secure online trading. Most individuals who sell goods on our platform are simply getting rid of things they no longer use,” the platform said in a statement.
OLX criticized the government’s proposal to require all private sellers to provide personal data to platforms, regardless of sales volume, as well as the need to pay a 5% personal income tax along with a 5% military levy, and the need to manually refund the tax through the tax service if the annual sales volume does not exceed EUR2,000. The company noted that the introduction of the rules would lead to higher prices for buyers and an increase in “shadow” sales outside digital platforms.
The company noted that it fully supports the objectives of the European DAC7 Directive and emphasized the importance of ensuring tax transparency. OLX insists on the implementation of the requirements of this directive, as has already been successfully done in EU countries.
“In these (European – IF-U) countries, private sellers are not subject to the rules if their annual sales do not exceed €2,000. However, entrepreneurs who trade through online platforms are identified, and their data is responsibly transferred to the tax authorities,” the platform explained.
OLX called on lawmakers to engage in a real dialogue with the market regarding the provisions of the bill. The platform, in turn, is ready to provide expert recommendations on the best international practices for implementing the DAC7 directive, the statement said.
As reported, according to the government bill, a personal income tax (PIT) rate of up to 5% will apply to accountable sellers, provided that they open a separate bank account for receipts from platforms and do not trade in excisable goods, as well as if they are not self-employed, do not have employees, and their annual income does not exceed 834 minimum wages (approximately UAH 6.7 million as of January 1, 2025). For anyone who does not meet these conditions, the general PIT rate remains at 18%.
The government’s submission of a bill to introduce the automatic exchange of information on income received through digital platforms such as OLX, Prom, Rozetka, Uklon, Bolt, etc. is a condition of the cooperation program with the International Monetary Fund. The government approved the relevant document in April and submitted it to parliament, but it was criticized for lacking a minimum threshold for application.
