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Pornhub will pay taxes in Ukraine — as «an electronic service provider»

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Катерина Даньшина

The company MindGeek (or Aylo), which owns the Pornhub porn site, has become a taxpayer in Ukraine.

«The company that owns the PornHub service eventually registered as a VAT payer as a provider of electronic services», — reported Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy.

Last December, the State Tax Service of Ukraine imposed a fine on the owner of Pornhub in the amount of $5,543 for non-payment of «Google tax»The so-called Google tax, or e-services tax — is a 20% value added tax (VAT) paid by non-residents providing electronic services to Ukrainian users. The law was adopted in June 2021 and entered into force on January 1, 2022..

Another social network with intimate content, the British OnlyFans, is already paying the tax in Ukraine. In the first quarter of 2024 alone, the site contributed $0.7 million to the Ukrainian budget, almost as much as for the first 9 months of last year.

In total, 17 new non-resident taxpayers providing electronic services were added in the first quarter of 2024. As of today, according to Hetmantsev, a total of 78 (out of 105) taxpayers have declared their tax liabilities in the amount of UAH 2.4 billion (EUR 25.5 million and USD 32.6 million).

Among the largest VAT payers among digital service providers who declared and paid more than UAH 2 billion before the deadline are Google, Apple, Meta, and Valve.

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