Online gaming firms operating in Ukraine will now have to resume paying an 18% turnover tax as part of efforts by the government to raise additional revenue. The measure has been implemented under recently-approved amendments to the country’s tax code.
Turnover Tax Aimed at Raising Govt. Revenue
The reintroduction of the turnover tax for licensed online gaming operators in Ukraine was reportedly confirmed via the instant messaging platform Telegram by Danylo Hetmantsev, Chairman of the Verkhovna Rada’s Finance Committee. The reinstated levy is projected to generate UAH1.5 billion (€35 million) in revenue for the government each year.
Additionally, upon orders from the government, Ukraine’s gambling authority KRAIL will start revoking the licenses of operators who have not paid their licensing fees and have committed offenses in their market operations.
iGaming Operators Under Scrutiny
Earlier this month, KRAIL cancelled the licenses of three gambling firms in the country, including Parimatch LLC, over their ties with Russia. This follows sanctions imposed in March by Ukrainian President Volodymyr Zelenskyy on several Russian online gaming operators and individuals who have links with Russia.
Ukraine has been involved in an armed conflict with Russia since February 2022, resulting in hundreds of thousands of casualties. The war also led to major sanctions against businesses and individuals having ties to Russia.
