Zelensky Approves New Legislation Ending Tax Exemptions on Foreign Parcels Starting July 2027

Revised Tax Rules on International Parcels Announced

According to ХВИЛЯ: On October 22, President Volodymyr Zelensky signed two laws eliminating the tax exemption for parcels from abroad valued up to 150 euros. Going forward, value-added tax (VAT) will apply not only to large purchases but also to smaller items and gifts sent by relatives. These updated regulations will come into effect no earlier than July 1, 2027, allowing all market participants ample time to prepare.

Details of the Updated Tax Framework

Under the new provisions, VAT will be charged at a rate of 20% on the full declared value of the parcel. A tax exemption for gifts remains, but only if the parcel meets four strict criteria:

• The parcel’s declared value does not exceed 45 euros;
• Both sender and recipient are private individuals;
• The parcel is sent free of charge;
• Contents are intended solely for personal or family use, not for commercial purposes.

This 45-euro exemption does not apply to excise goods.

Importantly, the tax on gifts will be calculated based on the total invoice value, not just the amount exceeding the threshold. The total value is considered per sender-recipient pair in a single postal dispatch or express shipment. Customs duty will not be charged on parcels valued up to 150 euros, but shipments between 150 and 10,000 euros will incur a 10% duty. Previously, duty was only applied to the amount exceeding 150 euros, but now it will be calculated on the entire declared value.

VAT is calculated on the sum including customs duties. Payment procedures vary as follows:

• If the item’s value is up to 150 euros, the platform charges and remits VAT at the time of purchase;
• For purchases above 150 euros or when platforms do not apply special rules, postal operators or express carriers handle tax processing upon import;
• Taxes on gifts from individuals are processed at customs if they do not meet exemption criteria.

“First, customs duty is added to the item’s cost, then 20% VAT is applied on that increased amount. Essentially, it’s tax on top of tax.”

Irina Polyakova, Tax Expert

These legislative changes mark a significant shift for Ukrainian consumers, likely increasing the overall costs of online international purchases.

Higher taxes on foreign parcels may influence consumer behavior, encouraging budget reassessment and exploration of alternative options. Businesses may also need to adjust their strategies to remain competitive under the new tax environment. Awareness of these upcoming changes is crucial for consumers to plan their purchases accordingly.

As these new tax regulations come into play, it is essential to understand the broader implications for international shipping and marketplace responsibilities. For a deeper dive into how these changes will affect VAT from the first euro and the accountability of online platforms, check out our detailed coverage on the recent parliamentary advancements.