Ukrainian Parliament Approves New Tax Rules for Small International Parcels Under €150

Legislative Steps Toward Taxing Small Cross-Border Shipments

According to Рубрика — Суспільство: On September 16, Ukraine's Verkhovna Rada passed a set of revised bills addressing the taxation of small postal and express shipments valued up to €150, ordered via online marketplaces. These legislative changes, involving amendments to the Tax Code (registration No. 16051-1) and the Customs Code (registration No. 15460), establish a legal framework aligned with European Union standards for modern e-commerce taxation. The adoption of these reforms is expected to bring Ukraine closer to securing approximately €4 billion in international financial aid.

Key Taxation Updates

The new laws eliminate VAT exemptions on imported goods purchased through marketplaces. Ukraine will implement a VAT collection mechanism similar to the EU’s Import One-Stop Shop (IOSS) system. This overhaul aims to increase state revenues by an estimated 10 billion UAH next year, with funds earmarked for national defense priorities.

The legislation includes the following provisions:

• Introduce specific tax rules for remote sales of goods through marketplaces when the total invoice value does not exceed €150;
• Apply VAT on imports in international postal and express shipments starting from the first euro;
• Maintain VAT exemptions for non-commercial parcels valued up to €45;
• Establish a list of military-related goods exempt from VAT on imports via international postal and express deliveries.

These Tax and Customs Code amendments will come into effect no earlier than July 2027.

Local businesses and industry groups have voiced support for ending the VAT relief on parcel imports. Surveys indicate that over 54% of Ukrainian citizens also back the changes in international parcel taxation.

Serhiy Marchenko stated, 'This is a crucial decision demonstrating Ukraine’s commitment to reform and align with modern European standards to our international partners.'

Overall, these legislative changes mark a significant advancement in developing Ukraine’s e-commerce sector and aligning it with EU norms. The updated tax framework is anticipated to stimulate growth in the online retail market while generating additional resources for the country’s defense budget. This initiative also underscores Ukraine’s determination to integrate into the European economic space and enhance its investment appeal for global partners.

As these new tax regulations come into play, they mark a significant shift in Ukraine's approach to international trade. For a deeper understanding of how these measures align with European standards and their potential impact on import taxation, you can explore more in our article on the proposed EU-aligned tax for imported parcels.