TAX or Google, Meta, and OpenAI: How Much Money Ukraine Received in 2025
22 May 20:03
In the first quarter of 2025, revenues to the state budget of Ukraine from the so-called “Google tax” exceeded UAH 3.5 billion. This is 31.6% more in euros and 25.8% more in US dollars compared to the same period in 2024, Ruslan Kravchenko, head of the State Tax Service of Ukraine, wrote on his official Telegram channel on May 22, "Komersant Ukrainian" reports.
He noted that in currency terms, international digital companies paid €39.6 million and $43.4 million in VAT to the Ukrainian budget.
As of April 2025, 136 foreign companies were registered as VAT payers in Ukraine, which is 26 more than in the previous quarter. The list of such companies includes leading digital market players:
- Apple
- Google,
- Meta,
- Netflix, and others,
- OpenAI,
- Sony,
- eBay,
- Bolt,
- Etsy,
- Valve,
- Wargaming and others.
Ruslan Kravchenko, Head of the State Tax Service of Ukraine, emphasized that these funds are important for financing the state in times of war and contribute to creating a transparent tax environment for global and Ukrainian companies.
“I am grateful to all taxpayers who support civilized business practices and pay taxes. It is not only about additional budget revenues, which are extremely necessary in times of war,” Kravchenko wrote.
He also emphasized that today the “Google tax” has become an effective tool in the field of digital taxation and an important source of budget revenues.
What you need to know about the “Google tax”
the“Google tax” is the unofficial name of the law that obliges foreign companies that provide electronic services to Ukrainian consumers to pay value added tax (VAT) in Ukraine.
It was introduced in 2021 and became effective on January 1, 2022. Its official name is Law No. 1525-IX, which amended the Tax Code. The document provides for the mandatory payment of 20% value added tax for non-residents providing electronic services to Ukrainian users.
What types of services fall under the category of electronic services
These include, in particular
- supplying electronic copies of images and information, i.e. e-books, magazine subscriptions, photo stocks, etc;
- providing access to databases, including the use of search engines and catalog services on the Internet (for example, searching in the well-known Google);
- providing access to audiovisual works, games, etc. (this applies to gaming platforms and streaming services such as Steam, Netflix, AppleMusic, etc;)
- providing access to information, commercial, entertainment electronic resources, in particular, but not exclusively, posted on information or video sharing platforms, i.e. social networks (e.g. Facebook, TikTok or YouTube)
- providing distance learning services on the Internet, which does not require human intervention (i.e., mass online courses);
- provision of a cloud service, including computing resources, storage resources or electronic communications systems using cloud computing technologies (cloud services and hosting, for example, Dropbox);
- supply of software and updates to it (for example, Microsoft or Adobe);
- providing advertising services on the Internet, mobile applications and other electronic resources, providing advertising space, in particular by placing banner ads on websites (e.g. Google Ads, Facebook, etc.).
Are there any exceptions?
The following services are exempted:
- accommodation, car rental, catering services, passenger transportation services and other similar services;
- supply of goods (services) that include electronic services, if their cost is already included in the total cost of such goods/services;
- distance learning services on the Internet, if the Internet is used exclusively as a means of communication between the teacher and the student;
- supply of copies of works in the field of science, literature and art on material carriers;
- providing consultations by e-mail;
- providing access to the Internet.
What is the purpose of the “Google tax”?
This taxation mechanism aims to:
- increase revenues to the state budget;
- equalize conditions for Ukrainian and foreign companies in the digital services market;
- prevent tax evasion by large tech giants.
It is worth noting that in 2024, revenues from this tax amounted to over UAH 12.6 billion, which is 40% more than in 2023. This mechanism is already in place in many countries, and in Ukraine it has become part of the formation of a civilized digital economy.
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