The Cabinet of Ministers is changing the rules for parcels: VAT will be paid upon purchase, and the limit of 150 euros will be abolished

The Cabinet of Ministers of Ukraine has approved a bill that radically changes the taxation of international parcels and e-commerce. It involves the abolition of the current threshold of 150 euros, the transfer of VAT payment to the stage of payment for the goods and the introduction of a new model of tax administration.

According to the initiative, a key role in the payment of VAT will be given to electronic platforms or delivery operators, who will actually become new responsible tax payers. At the same time, VAT exemption is provided for non-commercial shipments worth up to 45 euros.

The reform is aimed at de-shadowing the online trade market, harmonizing with European standards and leveling the playing field for Ukrainian businesses. At the same time, experts warn about the risks of double taxation and the difficulties of practical implementation of the new rules.