Parliament Advances New Tax Rules on International Parcels, VAT from Zero Euros, and Marketplace Responsibilities

Legislation Targets Taxation of International Shipments

According to Мінфін: The Verkhovna Rada’s committee has endorsed the adoption of draft laws №16051-1 and №15460 in their entirety, focusing on the taxation framework for international parcels. These bills introduce updated VAT regulations on imported goods, assign VAT payment duties to marketplaces, maintain a VAT exemption for non-commercial parcels valued up to 45 euros, and allocate additional revenues to a dedicated government fund supporting Ukraine’s Armed Forces. Aligning these rules with EU standards fulfills part of Ukraine’s international commitments and modernizes the country's e-commerce legislation.

Key Changes in VAT Implementation

Under the proposed system, imported goods purchased via marketplaces will have VAT applied starting from zero euros, with a 20% VAT rate automatically included in the product price at purchase. Recipients will not experience changes in parcel receipt procedures. Marketplaces will be responsible for VAT payments, and for foreign sellers, a designated intermediary within Ukraine will handle this obligation. The existing VAT exemption for non-commercial parcels valued below 45 euros remains intact.

This reform is projected to generate approximately 10 billion UAH in additional annual revenue, funneled into a special state budget fund dedicated to the Armed Forces of Ukraine. The bills also introduce a Ukrainian counterpart to the EU’s Import One-Stop Shop (IOSS) system. Passing these laws is expected to facilitate access to nearly 4 billion euros in financial aid. The new tax regulations are planned to come into force no earlier than July 2027.

These legislative measures represent a significant milestone in Ukraine’s e-commerce evolution, addressing taxation of international parcels-a matter of growing importance amid rising online shopping trends. The additional budgetary support for the military underscores the critical role of defense financing amid ongoing aggression. Furthermore, aligning tax policies with European norms may enhance the global competitiveness of Ukrainian businesses.

As Ukraine moves towards a more structured approach to e-commerce taxation, it is essential to understand the implications of the recent legislative changes. Notably, the proposed reforms coincide with the removal of VAT exemptions on international parcels valued under €150, set to take effect in 2027. This shift signifies a broader effort to align with EU standards and enhance revenue streams for state initiatives.