Ukraine Moves Toward EU Standards with DAC7 Adoption

September 18, 2025

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The Ukrainian Ministry of Finance announced that the Cabinet of Ministers has approved the draft Law aimed at updating the Tax Code and other related legislation to implement the international automatic exchange of income information earned through digital platforms, specifically the EU's DAC7 and the OECD's Model Rules for Reporting by Platform Operators (Model Rules).

Impact on Digital Platform Operators

With this announcement, the Ukrainian Ministry of Finance signals Ukraine's movement towards aligning its tax system with international standards by introducing a law that facilitates the automatic exchange of income information earned through digital platforms like Bolt, Airbnb, Booking, Uber, and Glovo.

As stated, new rules require the State Tax Service to receive income data from both platform operators and foreign Tax Authorities, essentially eliminating the need for taxable persons to submit separate declarations, as the platform operators will act as tax agents.

Additionally, individuals earning income through platforms can benefit from a reduced personal income tax rate of up to 5% if they meet certain conditions, such as using a dedicated bank account, having no employees, staying below an annual income threshold of approximately UAH 6.7 million (around EUR 139,000), and not trading goods subject to excise duties.

Notably, small or occasional sales, referring to up to three per year and totaling no more than EUR 2,000, or sales of household items under UAH 36,336 (EUR 750), are exempt from taxation, preserving relief for casual sellers.

Conclusion

The Ministry of Finance underlined that the proposed regulations aim to increase transparency, simplify tax administration, and curb the shadow economy, while fostering the growth of Ukraine’s digital economy and enhancing trust in the tax system.

Moreover, the adoption of the DAC7 and OECD Model Rules is necessary not only as part of Ukraine's path to EU membership, but also as part of Ukraine’s accession to the global digital platform income information exchange system under the Multilateral Competent Authorities Agreement on the Automatic Exchange of Information on Digital Platform Income (DPI MCAA), which 29 countries have already joined.

Source: Ministry of Finance of Ukraine

What did the Ukrainian Ministry of Finance recently announce?

The Ministry of Finance announced that the Cabinet of Ministers has approved a draft law updating the Tax Code to implement DAC7 and OECD Model Rules for automatic exchange of digital platform income data.

Which digital platforms are affected by Ukraine’s DAC7 adoption?

Platforms such as Bolt, Airbnb, Booking, Uber, and Glovo will be required to share income data with the State Tax Service under the new rules.

How will income reporting change for individuals using digital platforms?

Individuals will no longer need to file separate tax declarations since platform operators and foreign tax authorities will report their income directly to the State Tax Service.

What tax benefits are available for individuals under the new law?

Eligible individuals can access a reduced 5% personal income tax rate if they use a dedicated bank account, stay under an annual income threshold, have no employees, and avoid excise goods.

Are casual or small-scale sellers included in the new taxation rules?

No, small or occasional sales, such as up to three sales a year totaling under EUR 2,000 or household item sales under EUR 750, remain exempt from taxation.

Why is Ukraine adopting DAC7 and OECD Model Rules?

Ukraine is aligning with international standards to increase transparency, reduce the shadow economy, foster digital growth, and progress towards EU membership and global tax cooperation.

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