The Cabinet of Ministers has once again submitted to the Verkhovna Rada a package of bills on abolishing duty-free exemptions for parcels worth up to €150
Kyiv • UNN
The Cabinet of Ministers proposes levying 20% VAT on marketplace parcels from the first euro, while retaining the customs duty and the exemption for gifts worth up to €45. The new rules could come into effect no earlier than July 2027.
The Cabinet of Ministers approved and submitted to the Verkhovna Rada two related draft laws on the taxation of small postal and express shipments worth up to €150 ordered through marketplaces. The documents provide for the abolition of the tax exemption for parcels worth up to €150. This was reported by the press service of the Ministry of Finance, as reported by UNN.
Today, September 7, the Cabinet of Ministers re-approved two related draft laws on the taxation of small postal and express shipments worth up to €150 ordered through marketplaces. The package of draft laws establishes a comprehensive legal framework for introducing in Ukraine the same e-commerce taxation rules that are already in force in the European Union
According to the Ministry of Finance, the documents propose introducing special taxation rules for the distance sale of goods through marketplaces if their total invoice value does not exceed €150; introducing VAT on the import of goods in international postal and express shipments starting from €0; introducing VAT on the import of goods in international postal and express shipments starting from €0; and retaining the VAT exemption for non-commercial parcels worth up to €45, in line with the EU approach.
Addition
On Tuesday, September 1, the Verkhovna Rada once again failed to pass the draft laws abolishing the tax exemption for parcels worth up to €150. The two draft laws in question are No. 15460 and No. 15112-d.
Draft Law No. 15460 introduced amendments to the Customs Code of Ukraine (which regulates customs procedures, border clearance rules, and the €150 threshold for import duty).
Under the draft law, VAT on imported goods purchased through marketplaces was to be introduced starting from €0.
Currently, international shipments worth up to €150 are not subject to import VAT or import duty. Under the proposed rules, the limit itself would remain, but its effect would change: goods worth up to €150 would be exempt from duty only. Thus, VAT at the basic rate of 20% would be charged starting from the first euro of the goods’ value.
For shipments worth more than €150, the basis for calculating the duty would change. It would be charged at a rate of 10% of the parcel’s entire invoice value, rather than only on the amount exceeding €150.
At the same time, private gifts sent free of charge and worth up to €45 were also expected to remain exempt from taxation. The new rules would not apply to the distance sale of alcohol and tobacco.
Requirements for record-keeping by marketplaces and their representatives in Ukraine (for non-resident marketplaces), as well as a special guarantee for the use of the distance-selling scheme, were to be introduced.
A transition period was предусмотрено for postal operators, express carriers, and marketplaces to adapt. During the first year, administrative liability would not apply for unintentional errors related to the incomplete or late payment of VAT on parcels worth up to €150, provided that the tax itself was paid in full.
Draft Law No. 15112-d, "On Amendments to the Tax Code of Ukraine Regarding the Taxation of E-Commerce Transactions with Value Added Tax."
The document was intended to amend the Tax Code of Ukraine (which establishes the rules for calculating and paying VAT on e-commerce and parcels).
According to the Ministry of Finance, the draft laws were revised taking into account the comments received.
The revised Draft Law No. 15460 underwent almost no changes, while Draft Law No. 16051, which was approved by the government instead of No. 15112-d, underwent some changes.
In particular, in addition to the provisions set out in Draft Law No. 15112-d, it provides for bringing the provisions concerning politically exposed persons (PEPs) into line with the wording agreed upon with the EU.
Thus, under the draft law, if a politically significant person ceases to perform prominent public functions, banks must continue to take into account that person’s ongoing risks for at least twelve months from the day following the date on which the person ceased performing prominent public functions.
At the same time, the subject of primary financial monitoring must take into account the risks that remain inherent in a politically exposed person, in particular:
- the level of influence that the person may still have;
- the scope of authority with which the person was vested;
- the connection between past and current powers, etc.
After at least twelve months have elapsed from the date on which the person ceased performing prominent public functions, the subject of primary financial monitoring must continue taking measures until it establishes that business relations with such a person do not pose risks inherent in politically exposed persons.
The proposed effective dates have also been changed: the provisions of the Tax Code and the Customs Code are to take effect no earlier than July 2027.
Previously, it was envisaged that they would take effect on January 1, 2027.
It should be noted that on June 9, the Verkhovna Rada adopted as a whole draft law No. 15111-d on the taxation of digital platforms. On June 11, it was signed by Verkhovna Rada Chairman Ruslan Stefanchuk, and on June 12, it was sent to President Volodymyr Zelenskyy for signature, where the document has since been "stuck" with the head of state.
The matter is that, during the second reading, a provision was submitted to the document providing for amendments to the financial monitoring system for politically exposed persons. The relevant committee included it in the bill, and the plenary chamber subsequently supported it.
PEPs include current and former top officials: from members of parliament, ministers and the president to heads of law enforcement agencies, members of the NBU Board and ambassadors.
Draft law No. 16051 provides for excluding heads of structural units of the central office of the National Bank of Ukraine and employees responsible for conducting financial monitoring at a bank in which more than 50 percent of the shares in the charter capital are owned by the state from the list of public figures.
Under the law, banks and other financial companies are required to conduct enhanced financial monitoring of PEPs, their close relatives and business partners.
PEP status is lifelong. At the same time, enhanced financial monitoring applies while the person holds a top position and for 12 months after their dismissal. However, banks and other financial institutions may continue to conduct enhanced checks of a PEP if they consider that the person remains high-risk.
The amendments introduced to the draft law impose penalties on banks that decide to continue enhanced monitoring of a PEP's transactions after 12 months have elapsed since the person was dismissed from a top position.
According to some members of parliament, it is precisely because of this amendment that Zelenskyy has still not signed the aforementioned draft law.