The Rada introduced a tax on parcels worth up to €150 — what is changing and what the partners’ money has to do with it

The Verkhovna Rada amended the Customs Code to abolish the VAT exemption for parcels worth up to €150 sent through foreign marketplaces, thereby adopting tax and customs changes to cancel the tax benefit and impose taxes on such parcels. UNN reports this, citing the parliament’s press service.

Bringing the rules for taxing goods from foreign marketplaces into line with EU standards. Parliament adopted the relevant law (Reg. No. 15460). A total of 249 members of parliament voted in favor

What is changing

The document amends the Customs Code of Ukraine. It updates the rules for taxing imported parcels and abolishes the VAT exemption for shipments worth up to €150. At the same time, non-commercial parcels worth up to €45 will not be taxed.

Previously, the Verkhovna Rada adopted one of the bills (No. 16051-1) to abolish tax exemptions for parcels worth up to €150 sent through foreign marketplaces, namely, to impose VAT on e-commerce and international parcels. The relevant amendments are being introduced into the Tax Code.

Supplement

On September 7, the Cabinet of Ministers approved and submitted to the Verkhovna Rada two related draft laws on taxing small postal and express shipments worth up to €150 ordered through marketplaces. The documents provide for abolishing the tax exemption for parcels worth up to €150.  

Draft Law No. 15460 amends the Customs Code of Ukraine (which regulates customs procedures, border clearance rules, and the €150 threshold for import duty). 

Under the draft law, VAT would be introduced on imported goods purchased through marketplaces, starting from €0. 

Currently, international shipments worth up to €150 are not subject to import VAT or import duty. Under the proposed rules, the threshold itself will remain, but its effect will change: goods worth up to €150 will be exempt only from duty. Thus, VAT at the standard rate of 20% will be charged from the very first euro of the goods’ value.

For shipments worth more than €150, the basis for calculating the duty will change. It will be charged at a rate of 10% of the parcel’s entire invoiced value, rather than only on the amount exceeding €150. 

At the same time, private free-of-charge gifts worth up to €45 were expected to remain exempt from taxation. The new rules will not apply to the distance selling of alcohol and tobacco.

Government Draft Law No. 16051, which amends the Tax Code of Ukraine, establishes rules for assessing and paying VAT on e-commerce and parcels; however, the government included in it provisions bringing the rules concerning politically exposed persons (PEPs) into line with the wording agreed with the EU.

Incidentally, on June 9, the Verkhovna Rada adopted in its entirety a 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, and since then the document has been "stuck" with the head of state. 

The issue is that, during the second reading, a provision was submitted for the document that provides for changes to the financial monitoring system for politically exposed persons (PEPs). The relevant committee included it in the draft, and the plenary chamber subsequently supported it.

PEPs include current and former senior 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 are owned by the state from the list of politically exposed persons. 

Under the legislation, 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 throughout a person's tenure in a top position and for 12 months after their dismissal. However, banks and other financial institutions may continue to subject a PEP to enhanced scrutiny if they consider the person to remain high-risk.

The amendments made to the draft law introduce penalties for banks that decide to continue enhanced monitoring of PEP transactions after 12 months have passed since the person left a top position.

According to some members of parliament, this amendment is precisely why Zelenskyy has still not signed the aforementioned draft law. 

However, the Verkhovna Rada later adopted an alternative draft law, No. 16051-1, which abolishes the provisions concerning PEPs and establishes that taxes on parcels will be credited to the special fund of the State Budget of Ukraine and allocated to meeting the needs of the Armed Forces of Ukraine. 

Before its second reading, draft law No. 16051-1 also included amendments concerning PEPs, which are intended to unblock the signing of Law No. 15111-d on taxing income from digital platforms.

As members of parliament note , during the vote on tax amendments on October 15, "the amendment concerning PEPs passed." Therefore, this will unblock the signing of the draft law on taxing digital platforms.

"These are the main changes concerning the abolition of the exemption for parcels worth up to €150. Since the tax amendments have already been adopted, it can effectively be said that the authorities have completed the process. However, it will not take effect before July 2027," Yaroslav Zhelezniak, a member of parliament from the tax committee, commented on the adoption of tax and customs amendments concerning parcels.

Connection with funding from partners

The two draft laws concerning the taxation of parcels worth up to €150 are among the four decisions required to unlock EU macro-financial assistance under the Ukraine Support Loan programme. The other two decisions were adopted by parliament the previous day, October 14. The amount in question is €4 billion. 

"Let me remind you that, for the €4 billion tranche, the following are needed: a resolution on experts for selecting members of the Accounting Chamber; the assessment law; tax amendments to the law on parcels; customs amendments to the law on parcels; and the amendment concerning PEPs in the tax law on parcels. So the tranche has been unlocked here.... the only problem is that at least another €25 billion is still hanging in the balance and waiting, including for our anti-corruption draft laws.... which the authorities are blocking," Zhelezniak commented.

According to him, this will also help with funding from the IMF.

"The IMF's annual meetings are taking place starting today. So their tranche has also been unlocked. This year they are not in Washington, but in Bangkok (Thailand)," Zhelezniak noted.

Tax on parcels - the government explained the essence of the reform30.07.26, 11:29 • 13404 views