Taxes for AliExpress and Shein: business calls for the abolition of the parcel tax exemption

3 July 2025 22:10

Representatives of Ukrainian business during a roundtable organized by the American Chamber of Commerce called on the authorities to abolish tax exemptions for imports of international parcels with goods worth up to 150 euros. This was reported by "Komersant Ukrainian" with reference to the American Chamber of Commerce in Ukraine.

Ukrainian businessmen consider this provision (the tax exemption – ed.) unfair and harmful to the national economy.

Amount of losses and scope of the problem

According to representatives of the USPA E-Commerce Committee, in 2024 alone, the state budget lost about UAH 19 billion due to the VAT exemption. Instead, according to official data, over 75 million international parcels, mostly clothing, footwear, and accessories, arrived in Ukraine last year through this mechanism.

Shadow schemes and unfair competition

The simplified import procedure and lack of proper control facilitate systemic abuse. Moreover, the preferential regime encourages business fragmentation: foreign traders divide their retail chains into numerous individual entrepreneurs, thereby reducing tax rates and evading responsibility.

They also do not keep VAT records and conceal their real turnover.

Another problem is the cash “envelope” payment system, which covers suppliers, logistics, and online retailers, creating an unequal playing field for the legal sector.

The problem of underground resale logistics also requires a solution. The point of the “scheme” is that goods are imported in small packages, bypassing the declaration, which not only reduces revenues but also creates additional difficulties for official dealers.

The issue covers several sectors at once: from electronic and household appliances to delivery channels for tobacco products, alcohol, and even fixed-line internet and HoReCa services.

Business arguments

The panelists made several key conclusions:

1. Inequality. For official business, there is a 20% VAT, registration, and regular inspections; for the import segment, there is a range of unbalanced opportunities.

2. Shortage of state revenues. uAH 19 billion is only a direct loss. Actual losses may exceed 25 billion, with an increase from other taxes.

3. Discrediting the legal framework. Legal businesses express dissatisfaction with the low level of protection, but they do not go into the shadows. They are the ones who form the GDP.

4. Increased shadowing. The market for “things you can’t buy legally anywhere” is similar to the “black market,” when supplies are made through individual entrepreneurs with low tax payments and no declarations.

Read also: Parcels from abroad will become more expensive: The Cabinet of Ministers has made a decision

Proposals for the authorities

Representatives of Ukrainian business voiced several areas that, in their opinion, require changes:

1. Abolish the VAT exemption for parcels up to €150 and gradually raise the threshold to an economically justified level (e.g., €250-300), which will protect consumers and businesses.

2. Strengthen customs control and introduce an electronic documentary control system integrated with banks and delivery services.

3. Introduce strict monitoring of individual entrepreneurs – automated checks of registration schemes and turnover.

4. Introduce sectoral quotas for the HoReCa, alcohol, and tobacco sectors to prevent businesses from moving into the shadows.

Why it is important for the economy

If the state listens to Ukrainian business, the changes proposed by its representatives will be able to

  • increase budget revenues. The expected return of UAH 20-25 billion will help finance infrastructure projects, healthcare reform, etc.
  • balance the market. To do this, it is necessary to stimulate legal competition down the entire chain of delivery and sale of goods.
  • support domestic producers, as limiting benefits will reduce import competition for Ukrainian brands.
  • reduce the shadowing of the market and improve the investment climate.

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Мандровська Олександра
Editor

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