Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Topical Taxation Issues in Conditions of Digital Market

Author(s): Tetyana Kravtsova, Viktoriia Rohalska, Oleksandr Bukhanevych, Vasyl Ilkov, Oleksandr Chudnovskyi

Topical issues of taxation connected with the digital market in Ukraine and in the entire world are considered in the article. It was mentioned that the rapid growth of the digital services market has raised the issue of taxation of this type of activity by the states. Taking into account that the sale of goods and the provision of services in the digital market is carried out through digital platforms, their particular economic characteristics are listed. It was noted that Italy, as one of the initiators of the digital services tax, first introduced a 6% web tax, paid by entities that buy advertising services on Google and Facebook. It was found that in the Russian Federation, instead, there was a suggestion to introduce a special tax regime under which transaction data would automatically go to the tax services, which in turn would levy a tax rate of 3% and 0.5% for foreign Internet companies. Based on the report, it is concluded that the most optimal is to tax the profit of the digital platform under the law of the country where it has a digital presence. The relevant conclusion was made about the expediency of consolidating this approach in a single international document and acts of national legislation, including the Law of Ukraine "On E-Commerce" in 2015 and the Tax Code of Ukraine.

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