VAT from the first euro: Ukraine has once again started taxing parcels

The Cabinet of Ministers has re-approved two draft laws that provide for changes in the rules for taxation of international postal and express shipments worth up to 150 euros. In particular, the government proposes to introduce VAT on the import of goods in parcels, actually from the first euro.

This was reported by the Ministry of Finance of Ukraine. The package of draft laws primarily concerns goods that Ukrainians purchase remotely through foreign marketplaces.

What the government proposes to change

The draft laws provide for special rules for taxation of remote sales of goods through marketplaces, if their total invoice value does not exceed 150 euros.

Among the key changes:

introduction of VAT on the import of goods in international postal and express shipments from 0 euros;
a special mechanism for taxation of purchases through marketplaces worth up to 150 euros;
preservation of VAT exemption for non-commercial parcels worth up to 45 euros.

The last benefit will apply specifically to non-commercial shipments and, according to the Ministry of Finance, is consistent with the approaches used in the EU.

When the new rules may come into effect

After finalizing the draft laws, the government changed the proposed dates for their entry into force.

It is assumed that the relevant amendments to the Tax and Customs Codes will come into effect no earlier than July 2027.

Therefore, the re-approval of the draft laws by the Cabinet of Ministers does not mean the immediate introduction of VAT on all purchases from abroad. The documents must be considered by the Verkhovna Rada.

Why are parcel taxation being changed

The Ministry of Finance explains the initiative by the need to bring Ukrainian e-commerce taxation rules closer to European Union standards.

It is also expected that the abolition of the current benefit for commercial imports will create more equal competitive conditions for Ukrainian manufacturers.

According to the government’s calculations, the new rules could bring the budget about UAH 10 billion in additional revenue during the next year of their validity. These funds are planned to be directed to defense needs.

Bills related to Ukraine’s financing

The adoption of the relevant changes is also related to Ukraine’s international financial obligations.

According to the Ministry of Finance, the documents are part of the cooperation program with the IMF and a condition for macro-financial support from the European Union. Their adoption could pave the way for receiving about EUR 4 billion in financing from international partners.

Earlier, on September 1, the Verkhovna Rada for the second time did not support the customs bill on the abolition of the benefit for parcels worth up to EUR 150. After that, the government finalized the package of documents and re-approved it.