VAT legislation in Ukraine

Updated 4 months ago | 5 min read time
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Following changes to the Tax Code of Ukraine, we may be required to charge you 20% VAT on top of our commission. Your VAT obligations depend on whether you're a private individual, a legal entity or an individual entrepreneur registered for VAT purposes. You’ll need to indicate which one you are so we know whether to charge or not.


What’s in this article


What VAT charges apply to you

Here's a breakdown of the applicable charges:

Who will be charged 20% VAT:

  • Partners who are private individuals 
  • Partners who are legal entities or individual entrepreneurs registered for VAT purposes, but don't provide us with the required information
  • Partners who are individual entrepreneurs who aren't registered for VAT purposes

 Who won’t be charged 20% VAT:

  • Partners who are legal entities and provide us with the required information
  • Partners who are individual entrepreneurs registered for VAT purposes, and provide us with the required information

Providing us with your VAT information

You can update your VAT information in the extranet and indicate whether you're a private individual, legal entity or an individual entrepreneur registered for VAT purposes.

If you're a legal entity, provide us with the code you received from the United State Register of Legal Entities, Individual Entrepreneurs and Public Organisations of Ukraine (USR). If you're an individual entrepreneur registered for VAT purposes, add your VAT registration number.

Here’s how to update this information in the extranet:

  1. Log in to the extranet
  2. Click on ‘Finance’ and select either ‘VAT details’, or ‘Finance Settings
  3. State whether you’re a ‘Private Individual’, ‘Legal Entity’ or an ‘Individual Entrepreneur registered for VAT purposes’ and fill in the fields with the required information
  4. Click ‘Save’ to finalise

Update your VAT information


FAQ

  1. How does Ukraine's new VAT legislation affect me?

You may start receiving invoices where we'll charge 20% VAT on top of our commission. You must pay the total amount stated on the invoice. 

  1. How is the VAT I pay determined?

To determine your VAT obligations, you’ll need to let us know up front whether you're a private individual, legal entity, or an individual entrepreneur registered for VAT purposes, as well as provide us with the required information. For more details about this, click here.

  1. When will you start charging the 20% VAT?

We'll start charging 20% VAT in Ukraine in our invoices from March 2022.

  1. I'm a legal entity or VAT-registered individual entrepreneur who's provided all the required information. Why have I still received an invoice with a VAT charge?

Please check that the information you provided in the extranet is correct. If we've mistakenly charged you VAT, you need to ask us to credit the incorrect invoice and issue you another invoice without VAT.

  1. Is Booking.com currently paying tax in Ukraine?

Following recent amendments to the Tax Code of Ukraine, we have to charge certain partners 20% VAT from March 2022. We'll collect this from you and remit it to the Ukrainian tax authority. Booking.com BV's VAT registration is separate because Booking.com BV is a Dutch established and incorporated company and therefore only obligated to pay income tax in the Netherlands.

  1. What code will I receive from the USR?

Legal entities in Ukraine have a unique identification number issued by the USR upon registration. You can verify a code using this link.

  1. What if I don't provide the required information?

We'll issue you an invoice with 20% VAT on top of our commission fee. You must pay the total amount stated on the invoice.

  1. What is the required VAT information?

We need the following information to charge you the correct VAT:

  • Indicate in the extranet whether you're a private individual, legal entity or a VAT-registered individual entrepreneur
  • If you're a legal entity, provide us with the code you received from the USR
  • If you're an individual entrepreneur registered for VAT purposes, provide us with your VAT registration number
  1. Will all properties in Ukraine be charged VAT?

Only partners with billing addresses in Ukraine will be charged VAT, if applicable.

  1. Where can I find more information about the Tax Code of Ukraine and these changes?

You can find the relevant legislation and more information here.

  1. Where can I see Booking.com BV's Ukrainian VAT identification number?

You can see our Ukrainian VAT identification number in our invoices to you.

  1. Who should I contact if I have any questions related to tax and VAT legislation in Ukraine?

We recommend contacting your local tax adviser or accountant if you have any questions regarding VAT, such as if it will cost you extra.

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