The government approved an updated draft on VAT on parcels up to €150 — it was sent to the Verkhovna Rada

The government has approved and sent to the Verkhovna Rada an updated draft law on VAT on parcels worth up to €150 purchased on foreign marketplaces. The Rada failed the previous version of the draft in a vote.

This was announced by the State Customs Service and Prime Minister Serhiy Koretsky.

How the new system will work:

• VAT will be paid by the marketplace, not the Ukrainian buyer;
• Parcels will be declared by postal operators and express carriers based on special registers;
• requirements for registration and representation in Ukraine will be introduced for foreign marketplaces;
• will provide for a transitional period without penalties: during the first year, there will be no fines for unintentional errors in VAT payment if the tax itself is paid in full.

At the same time, private gifts worth up to €45 that are sent free of charge will still be tax-free.

The new rules are planned to be implemented no earlier than January 1, 2027.

The government draft law is included in a package with the main draft law No. 15112–d on amendments to the Tax Code, which is currently under consideration in the Verkhovna Rada. Together, these two documents should create a coherent legal framework to introduce the European model of taxation of distance sales of goods in Ukraine.

• VAT on parcels up to €150 is one of four tax bills that the IMF requires to be passed in order to extend the loan program for Ukraine. In April, deputies passed one of them, extending the military levy at a rate of 5% for three years after the war. And bill No. 15111-d on taxation of digital platforms — the “OLX tax” — was supported in the first reading.
• Among other IMF demands is to cancel VAT exemptions for individual entrepreneurs whose turnover exceeds 4 million hryvnias. But this demand was postponed.

For more news and in-depth stories from Ukraine, please follow us on X.