Verkhovna Rada approved VAT on parcels worth up to €150
Kyiv • UNN
The Verkhovna Rada passed a law on VAT for international online purchases regardless of their value. Non-commercial parcels worth up to €45 will be exempt from tax.
On October 15, the Verkhovna Rada adopted one of the bills aimed at abolishing tax exemptions for parcels worth up to €150 sent via foreign marketplaces—namely, the imposition of VAT on e-commerce and international parcels. UNN reports this, citing the parliament’s press service.
Taxation of international online purchases through foreign marketplaces. The Verkhovna Rada adopted the relevant law (Reg. No. 16051-1). It was supported by 252 members of parliament
What is envisaged
The document introduces amendments to the Tax Code of Ukraine and proposes imposing VAT on goods purchased through foreign marketplaces, regardless of their value. For online purchases worth up to €150, VAT will be assessed and paid by the electronic platform. Non-commercial parcels worth up to €45 are proposed to remain exempt from VAT.
As reported by Yaroslav Zhelezniak, a member of parliament from the Tax Committee, "an amendment by Shuliak was included in the bill on parcels (No. 16051-1): personal income tax for those who rent out housing is reduced from 18% to 5% (the 5% military levy remains). The argument: \"more opportunities for the real estate market to emerge from the shadow economy.\" The committee had rejected the amendment, but after consultations with the finance minister, agreed to it. 255 voted "for"."
"The amendment concerning PEPs also passed (no one put it to a confirmation vote). Therefore, this will also unblock the signing of another bill on the taxation of digital platforms," Zhelezniak also noted.
This bill is one of four decisions required to unblock EU macro-financial assistance under the Ukraine Support Loan program. The amount involved is €4 billion.