VAT on purchases via Amazon, eBay and Etsy will be automatically included in the price: Council prepares new rules

In Ukraine, the rules for taxation of purchases through foreign marketplaces may change significantly. The relevant committee of the Verkhovna Rada recommended that the parliament adopt draft laws No. 15112-D and No. 12360, which provide for the automatic charging of VAT on goods purchased through international online platforms.

This is about adapting Ukrainian legislation to European Union standards. The new rules will apply to platforms such as Amazon, eBay, Etsy and other electronic marketplaces.

Draft law No. 15112-D introduces the concept of “electronic interface enterprises” into the Tax Code. It is marketplaces, not buyers, that will become responsible for charging and paying VAT when selling goods to Ukrainians.

In fact, this means that a 20% tax will be automatically included in the cost of the goods when placing an order. For buyers, the delivery and receipt mechanism of parcels will not change, but the final price of the goods will increase.

One of the key innovations is the abolition of the tax-free limit of 150 euros for imported goods purchased through online platforms. After the law enters into force, VAT will apply to virtually all goods, regardless of their value.

At the same time, exceptions will remain for non-commercial international shipments between individuals worth up to 45 euros.

Separately, the draft laws provide for the implementation of international standards for the automatic exchange of tax information DAC7 and DPI. This means that European platforms will automatically transfer data about Ukrainian sellers to the EU tax authorities, and then to the State Tax Service of Ukraine.

Both individual entrepreneurs and individuals who sell goods through Etsy, eBay or European Amazon divisions without official registration of their activities will fall under the new control.

Thus, it will become much more difficult to hide income from sales on foreign marketplaces, and Ukrainian legislation will actually be integrated into the European system of digital tax control.