Blogging as a Business: Tax Risks and Legal Rules for Earning in Ukraine

Blogging in Ukraine has long ceased to be a hobby. It is now a real business that generates stable income — often in foreign currency and from international sources. Platforms such as YouTube, Instagram, TikTok, Patreon, OnlyFans, and Twitch have become full-fledged marketplaces for creative work. Yet, along with income come tax obligations, which many content creators only learn about after receiving their first inquiry from the tax authorities.

When a Blogger Becomes a Taxpayer

According to the Tax Code of Ukraine, any income of an individual — regardless of its source — is subject to taxation.

This means that if a blogger receives payments for advertising, video monetization, subscriptions, or donations, they must pay:

• 18% personal income tax (PIT);
• 5% military levy (rate effective from 2024).

If such activity is systematic, the tax authorities may classify it as entrepreneurial activity. In that case, the most appropriate solution is to register as a sole proprietor (FOP) — to operate legally, receive international payments, and avoid bank account blocks.

FOP or Individual: Which to Choose

• Occasional income (a one-time advertisement, gifts, or random donations) can be declared as individual income. Taxes apply at the standard rates: 18% + 5%.
• Regular income is best managed through FOP registration under the simplified tax system.

The most convenient option for bloggers is Group III of the simplified tax system (5% or 3% + VAT), as it allows receiving payments from abroad, simplifies reporting, and ensures a fixed percentage of tax based on actual income.

Foreign Income: The Main Risk

Most platforms that pay bloggers for content are registered abroad, for example:

• Google Ireland Ltd (YouTube) — Ireland,
• Fenix International Ltd (OnlyFans) — the United Kingdom.

Such payments are considered foreign income, which must be declared in Ukraine under Article 170.11 of the Tax Code.

The income declaration must be submitted by May 1 of the year following the reporting period, and taxes must be paid by August 1.

How the Tax Authorities Learn About Your Income

Ukraine has joined the Common Reporting Standard (CRS) — an international framework for the automatic exchange of financial information between tax authorities. This means that the Ukrainian tax service can receive data about foreign accounts, balances, and transactions, even if the funds never reached Ukrainian bank cards.

Tax Residency: The Key to Correct Taxation

If a blogger spends more than 183 days abroad per year and has a center of vital interests in another country, they may be considered a tax resident of that country. In such cases, the Double Taxation Avoidance Treaty applies — but only if the blogger has a certificate of tax residency issued by the foreign tax authority. Without this certificate, Ukrainian tax authorities may still treat the individual as a Ukrainian tax resident and demand taxes to be paid in Ukraine.

FOP and Blogging: A Legal Format

Registering as a FOP (sole proprietor) is the most practical way to legalize blogging income. Under Group III of the simplified tax system, a blogger pays only 6% of income (including unified tax and social contribution) and doesn’t have to file a separate declaration for foreign income.

Advantages of FOP registration for bloggers:

• official contracts with advertisers;
• financial transparency for banks and tax authorities;
• fewer risks during financial monitoring;
• the ability to work with international partners.

However, even as a FOP, bloggers must document the origin of income — through contracts, invoices, and payment records.

Liability and Penalties

Failure to declare or pay taxes can result in serious consequences:

• a fine of 10–25% of the unpaid amount;
• penalty interest of 120% of the NBU discount rate for each day of delay;
• criminal liability in cases involving significant sums.

Banks also have the right to block accounts if they detect unexplained foreign currency transfers.

How to Act Correctly

1. Keep all documents confirming your income (invoices, payment reports, correspondence).
2. Determine your tax residency status.
3. File an income declaration — even if the amount seems small.
4. If necessary — register as a FOP.
5. Respond to tax inquiries strictly within the law.

Blogging is a legitimate economic activity, not a “gray zone.” And the sooner Ukrainian content creators realize that a successful blog requires not only creativity but also tax literacy, the fewer unpleasant surprises they will face — in the form of fines, audits, or blocked accounts.