On August 2, the Ministry of Justice of Ukraine issued an order regarding the rules of professional ethics of notaries of Ukraine.
This order introduces the following changes to the order of the Ministry of Justice of Ukraine on the approval of the Rules of Professional Ethics of Notaries of Ukraine No. 2039/5 dated June 7, 2021, in particular, regarding the list of activities that notaries can perform:
- performing the function of a mediator; and
- signatories in accordance with the legislation in the field of electronic trust services.
This order shall enter into force on the day following its publication.
August 10 Verkhovna Rada of Ukraine approved a draft law of introduction changes to Civil Code of Ukraine, which expand the range of objects civil rights in the field of digital content and services.
value . A digital thing is a virtual assets , digital content and other goods... ".
In addition, the new edition of the Civil Code contains an article on the types of objects of civil rights, which means the following: "Objects of civil rights are things, money, securities, digital things, property rights, works and services, results of intellectual, creative activities, information, as well as other tangible and intangible goods. Objects of civil rights can exist in the material world and/or digital environment, which determines the form of objects, features of acquisition, exercise and termination of civil rights and obligations under them".
Also, the draft law defines the types of objects that cannot be in civilian circulation (that is, be bought, sold, or used in any other way) or can be in circulation only with a special permit (objects with limited circulation), and even types of objects of civil rights that can belong only to certain participants in the turnover.
This law will enter into force six months after its publication.
On August 10, the Verkhovna Rada adopted the draft law on digital content and digital services.
This draft law was developed with the aim of implementing EU directives into national legislation in accordance with the provisions of the Association Agreement between Ukraine and the EU, and, in general, one of the stages of legalization of the law on virtual assets. Such an innovation will become the basis for the regulation of civil legal relations between the performer and the consumer regarding the provision of digital services (on the basis of a digital content contract), which will contribute to the protection of the rights of consumers who are provided with goods or services in the form of digital content or digital services.
According to the text, this law applies to the following types of legal relations related to the provision of digital content and digital services to consumers:
1. Relationships in which the performer (supplier) provides or undertakes to provide digital content and/or a digital service to the consumer, and the consumer provides or undertakes to provide his personal data. However, the transfer of personal data is possible only when it is necessary exclusively for the provision of digital content and/or digital service, and without the intention of using it for any other purpose.
2. The relationship in which the performer provides or undertakes to provide digital content and/or digital service developed according to the consumer's specification. This means that the consumer can specify their requirements and expectations for the digital content or service, and the performer must take these requirements into account when designing and providing the product.
3. Relationships in which the performer provides or undertakes to provide digital content on a physical medium that is intended only for storing such digital content. This means that content can be stored on physical media such as flash drives, discs, CDs or DVDs, and the consumer can access it by connecting that media to their device.
The law also singles out relationships that are not covered by the Law, including: the provision of digital content and digital services included in goods or interconnected with goods, defined in the Law, and provided together with such goods under a purchase contract sales, regardless of whether the provision of digital content and (or) digital services is carried out by the seller of goods or by a third party; provision of services in which the digital form is used exclusively as a means of data transmission, as well as provision of electronic communication services, provision of medical services, financial services, legal services, consulting services, and organization and conduct of online gambling.
The law establishes the legal consequences of non-provision of digital content and/or digital service under the contract, non-compliance of the provided digital content and/or digital service with the requirements stipulated by this Law, as well as refusal of the contract under which the digital content and/or digital service is provided.
Sanctions in the form of a fine will be applied to business entities for violating the requirements of the Law in the following format:
1) violation of consumer rights related to the provision of digital content and/or digital service - in the amount of ten times the value of digital content and/or digital service based on the prices in effect at the time of their purchase, but not less than five tax-free minimums income of citizens (85 hryvnias);
2) violation of consumer rights related to the conformity of digital content and/or digital service - in the amount of 300 percent of the value of the provided digital content and/or digital service in violation of the requirements of the Law on the conformity of digital content and/or digital service, but not less twenty-five non-taxable minimum incomes of citizens (425 hryvnias), and in the event that, in accordance with the law, the business entity does not keep mandatory records of income and expenses or if the digital content and/or digital service was provided in exchange for the consumer's personal data - in the amount of fifty tax-free minimum incomes of citizens (850 hryvnias).
This law will enter into force six months after its publication.
On August 30, the President of Ukraine signed a draft law amendmending the Tax Code of Ukraine.
According to the text of the draft law, in addition to the exemption from customs taxation of sea vessels imported into the customs territory of Ukraine, in the import regime for use exclusively as search and rescue units for the purpose of fulfilling international treaties of Ukraine in the sphere of protection of human life at sea, in particular, corrections were made to the Tax Code regarding the return of tax on the gross income of the gaming business (Gross Gaming Revenue; GGR). Thus, the turnover tax for online casinos, i.e. taxation of all bets minus winnings, will amount to 18%.
This law enters into force on the day following the day of its publication.
On August 25, the European Act on digital services (Digital Services act; DSA) came into effect to monitor the internet platform Giants, which must comply with new requirements for content regulation on their media spaces.
This document obliges most giants of Internet platforms to correct or remove content that is dangerous or contains harmful materials, including disinformation about any products, information or actions and promotion of genocide, hostile attitudes, etc. Among such Internet platforms, the following can be distinguished: Facebook, YouTube, Google, Wikipedia, AliExpress, Amazon, and others. A total of 19 online platforms were published by the European Commission as of April 23, 2023, each with around 30 million monthly active users.
The law is a set of regulations aimed at promoting innovative technologies, growth and competitiveness both in the European single market and globally, and, in particular, designed to counter the spread of illegal content on the Internet.
Among the main ones, the law regulates online platforms that play a significant role in the service market and act as intermediaries between service providers and consumers in the digital dimension.
This order introduces the following changes to the order of the Ministry of Justice of Ukraine on the approval of the Rules of Professional Ethics of Notaries of Ukraine No. 2039/5 dated June 7, 2021, in particular, regarding the list of activities that notaries can perform:
- performing the function of a mediator; and
- signatories in accordance with the legislation in the field of electronic trust services.
This order shall enter into force on the day following its publication.
August 10 Verkhovna Rada of Ukraine approved a draft law of introduction changes to Civil Code of Ukraine, which expand the range of objects civil rights in the field of digital content and services.
value . A digital thing is a virtual assets , digital content and other goods... ".
In addition, the new edition of the Civil Code contains an article on the types of objects of civil rights, which means the following: "Objects of civil rights are things, money, securities, digital things, property rights, works and services, results of intellectual, creative activities, information, as well as other tangible and intangible goods. Objects of civil rights can exist in the material world and/or digital environment, which determines the form of objects, features of acquisition, exercise and termination of civil rights and obligations under them".
Also, the draft law defines the types of objects that cannot be in civilian circulation (that is, be bought, sold, or used in any other way) or can be in circulation only with a special permit (objects with limited circulation), and even types of objects of civil rights that can belong only to certain participants in the turnover.
This law will enter into force six months after its publication.
On August 10, the Verkhovna Rada adopted the draft law on digital content and digital services.
This draft law was developed with the aim of implementing EU directives into national legislation in accordance with the provisions of the Association Agreement between Ukraine and the EU, and, in general, one of the stages of legalization of the law on virtual assets. Such an innovation will become the basis for the regulation of civil legal relations between the performer and the consumer regarding the provision of digital services (on the basis of a digital content contract), which will contribute to the protection of the rights of consumers who are provided with goods or services in the form of digital content or digital services.
According to the text, this law applies to the following types of legal relations related to the provision of digital content and digital services to consumers:
1. Relationships in which the performer (supplier) provides or undertakes to provide digital content and/or a digital service to the consumer, and the consumer provides or undertakes to provide his personal data. However, the transfer of personal data is possible only when it is necessary exclusively for the provision of digital content and/or digital service, and without the intention of using it for any other purpose.
2. The relationship in which the performer provides or undertakes to provide digital content and/or digital service developed according to the consumer's specification. This means that the consumer can specify their requirements and expectations for the digital content or service, and the performer must take these requirements into account when designing and providing the product.
3. Relationships in which the performer provides or undertakes to provide digital content on a physical medium that is intended only for storing such digital content. This means that content can be stored on physical media such as flash drives, discs, CDs or DVDs, and the consumer can access it by connecting that media to their device.
The law also singles out relationships that are not covered by the Law, including: the provision of digital content and digital services included in goods or interconnected with goods, defined in the Law, and provided together with such goods under a purchase contract sales, regardless of whether the provision of digital content and (or) digital services is carried out by the seller of goods or by a third party; provision of services in which the digital form is used exclusively as a means of data transmission, as well as provision of electronic communication services, provision of medical services, financial services, legal services, consulting services, and organization and conduct of online gambling.
The law establishes the legal consequences of non-provision of digital content and/or digital service under the contract, non-compliance of the provided digital content and/or digital service with the requirements stipulated by this Law, as well as refusal of the contract under which the digital content and/or digital service is provided.
Sanctions in the form of a fine will be applied to business entities for violating the requirements of the Law in the following format:
1) violation of consumer rights related to the provision of digital content and/or digital service - in the amount of ten times the value of digital content and/or digital service based on the prices in effect at the time of their purchase, but not less than five tax-free minimums income of citizens (85 hryvnias);
2) violation of consumer rights related to the conformity of digital content and/or digital service - in the amount of 300 percent of the value of the provided digital content and/or digital service in violation of the requirements of the Law on the conformity of digital content and/or digital service, but not less twenty-five non-taxable minimum incomes of citizens (425 hryvnias), and in the event that, in accordance with the law, the business entity does not keep mandatory records of income and expenses or if the digital content and/or digital service was provided in exchange for the consumer's personal data - in the amount of fifty tax-free minimum incomes of citizens (850 hryvnias).
This law will enter into force six months after its publication.
On August 30, the President of Ukraine signed a draft law amendmending the Tax Code of Ukraine.
According to the text of the draft law, in addition to the exemption from customs taxation of sea vessels imported into the customs territory of Ukraine, in the import regime for use exclusively as search and rescue units for the purpose of fulfilling international treaties of Ukraine in the sphere of protection of human life at sea, in particular, corrections were made to the Tax Code regarding the return of tax on the gross income of the gaming business (Gross Gaming Revenue; GGR). Thus, the turnover tax for online casinos, i.e. taxation of all bets minus winnings, will amount to 18%.
This law enters into force on the day following the day of its publication.
On August 25, the European Act on digital services (Digital Services act; DSA) came into effect to monitor the internet platform Giants, which must comply with new requirements for content regulation on their media spaces.
This document obliges most giants of Internet platforms to correct or remove content that is dangerous or contains harmful materials, including disinformation about any products, information or actions and promotion of genocide, hostile attitudes, etc. Among such Internet platforms, the following can be distinguished: Facebook, YouTube, Google, Wikipedia, AliExpress, Amazon, and others. A total of 19 online platforms were published by the European Commission as of April 23, 2023, each with around 30 million monthly active users.
The law is a set of regulations aimed at promoting innovative technologies, growth and competitiveness both in the European single market and globally, and, in particular, designed to counter the spread of illegal content on the Internet.
Among the main ones, the law regulates online platforms that play a significant role in the service market and act as intermediaries between service providers and consumers in the digital dimension.
