“Online services are likely to become tax agents. What is hidden behind this term and how will it affect the provision of services?”, — write: epravda.com.ua
A new wave of regulatory initiatives, in particular regarding the taxation of self-employed persons who work through services such as Bolt, Glovo and Airbnb, will affect hundreds of thousands of Ukrainians. What will change and what should be prepared for? Who will pay taxes and how? From approximately 2026, online services will have to have more contact with the State Tax Service, as the Ukrainian government enters the finish line in the development of a draft law that provides for taxation of income received through digital platforms. Platforms will most likely become tax agents that will administer and pay self-employed taxes to the state budget. The tax rate is 5%. Most drivers and couriers agree to officially pay taxes on the condition that they do not have to register with FOPs and, accordingly, submit quarterly reports. Read also: How the tax office looked for taxes on OnlyFans Advertising: The advantages of this approach are significant. First, it is convenient for the self-employed: drivers, couriers and other self-employed people who receive income through the platforms are exempted from self-reporting and paying taxes. Secondly, it is transparency for the state: income control becomes more effective, the risk of tax evasion decreases. According to the Economic Expert Platform, this can bring the state up to UAH 2 billion per year. Of course, the implementation requires a transition period (6-12 months) to set up business processes and automate reporting. It is also important to create a simple and understandable reporting format that will inform about accrued income and taxes paid. Similar systems work successfully in the EU. For example, in Estonia, where banks automatically withhold taxes. There is a rate of 20% (and this is considered a low rate) of an amount not exceeding 25,000 euros per year, and 40% of the amount indicated above. At the same time, the person who opened the account for these purposes is not required to register as an entrepreneur or to keep records of income and expenses. Advertising: Another possible alternative is to place the responsibility for paying taxes on the self-employed. But at the moment it doesn’t seem possible. Despite the advancement of digital tools, many people still face difficulties. And there are not many people willing to deal with the tax office one more time. Regulation of the taxi market: in search of a compromise In addition to taxation, the issue of regulation of the taxi market, which has changed significantly over the last decade, remains relevant. Ride-hailing models, where the passenger interacts with the driver exclusively through digital platforms, have become the norm. However, the legislation still reflects outdated approaches that do not correspond to the modern market structure. For example, registration of drivers in physical logs, requirements for the exterior of cars, introduction of excessive restrictions for drivers and platforms, etc. Modern reform should be based on a concept that takes into account the key role of platforms in the transport sector: Creation of transparent conditions for platforms. Legislation should clearly define the rights and obligations of digital platforms as intermediaries between passengers and drivers. Consolidation at the state level of the registration process for drivers. Currently, each platform can set its own order. Integration with legislation on platform reporting and tax payment by individuals. After all, a large share of the market is made up of drivers who “work part time” between their main activities. We predict that taxi and ride-hailing reform discussions will become part of the general discussion about digital platforms in 2025. This topic has significant potential for positive changes, if decisions are based on transparency, simplicity and consideration of modern business models.