Purchases from abroad will become more expensive: The Cabinet of Ministers has approved a new tax on parcels
31 March 00:28
The Cabinet of Ministers of Ukraine has approved a package of three draft laws that provide for amendments to the Tax Code and the Law on Banks. Among the key changes are new rules for taxing international postal and express shipments, particularly goods that Ukrainians order from foreign marketplaces, according to "Komersant Ukrainian"
This involves the introduction of VAT on imported goods in international parcels, starting effectively at 0 euros, if it is a commercial order placed via an electronic platform. At the same time, exemptions will remain in place for certain non-commercial shipments.
The government notes that these draft laws will be submitted to the Verkhovna Rada of Ukraine for registration in the near future.
What exactly does the government want to change?
The government proposes to introduce a new model for taxing goods arriving in Ukraine via postal and express shipments from foreign sellers.
The main essence of the changes is as follows:
- VAT will apply to imported goods regardless of their value;
- this will apply to purchases made through online platforms;
- the tax is planned to be included in the cost of the goods at the order placement stage;
- platform operators or logistics operators will be required to pay VAT to the budget.
In effect, the government wants to eliminate the current tax advantage that certain foreign sellers have over Ukrainian businesses.
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Why the government wants to tax parcels worth up to 150 euros
In the explanatory note to the draft law, the government cites several reasons.
First, it aims to level the playing field for Ukrainian companies and foreign sellers who sell goods to Ukrainians through marketplaces.
Second, the government aims to combat schemes involving the underreporting of customs value and tax evasion.
Third, an increase in state budget revenues is expected, which is particularly important in the context of the war and future post-war reconstruction.
Which shipments will be subject to the new rules
This applies to remote sales of goods with a total invoice value not exceeding the equivalent of 150 euros, provided that they:
- are sent from another country to Ukraine;
- are purchased via an electronic interface or marketplace;
- are received by an individual.
It is important to note that this does not apply to excise goods—separate rules will apply to them.
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What will change for the buyer
For the average buyer, the main change is that VAT will be included in the price of the goods at the time of purchase.
In other words, the buyer will see the full cost of the order immediately, rather than upon the package’s arrival.
The government assures that the process of receiving goods will not change for the buyer: the package will still be delivered by a logistics operator.
Who will pay VAT to the budget
Two options are provided:
1. Through the e-platform operator
The marketplace or e-commerce platform immediately includes VAT in the cost of the goods and then transfers it to the Ukrainian budget.
2. Through the logistics operator
If the goods were sold without VAT, then the logistics operator collects the corresponding amount from the recipient upon delivery and transfers it to the budget.
The government refers to these approaches as the “sender” and “recipient” methods.
Will the buyer have to contact customs?
No. One of the key features of the new model is that the buyer will not have to interact with customs on their own.
All administrative procedures will be handled by:
- electronic platform operators;
- logistics operators.
In other words, the burden is shifted from the buyer to the business participants in the process.
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What happens if the buyer refuses the goods
The government addresses this situation separately. If a person refuses to accept the goods, for example due to damage or other reasons, the package will be returned to the sender.
In this case, the buyer must be refunded, including any VAT already paid.
Which packages will not be taxed
An important exception applies to non-commercial shipments valued at up to 45 euros.
VAT will not apply if the shipment consists of:
- gifts;
- items for personal or family use;
- goods sent free of charge;
- shipments that do not appear to have a commercial purpose.
In other words, if a relative or acquaintance sends a personal package and its value does not exceed 45 euros, it should not be subject to the new tax.
When the new rules may take effect
It is proposed that the new rules take effect on January 1, 2027.
According to the government’s plan, this transition period is intended to give platforms, logistics companies, and government agencies time to prepare for the new system.
Before that, the draft laws must still go through the parliamentary process. The government has already announced that they will be submitted to the Verkhovna Rada of Ukraine for registration in the near future.
Why this is linked to European rules
The Cabinet of Ministers emphasizes that these changes are in line with European Union practices.
A similar approach has been in effect in the EU since 2021. Ukraine is thus seeking to harmonize its tax legislation with European norms and OECD standards.
What this means for Ukrainians
If the Verkhovna Rada supports these initiatives, Ukrainians who order goods from abroad through marketplaces will see VAT already included in the price of the goods.
For the state, this will mean greater transparency in e-commerce and additional budget revenue.
For businesses, it means new rules of the game that should level the playing field between Ukrainian and foreign sellers.
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