Government Approves VAT Bills for Packages Up to 150 Euros

The Cabinet has re-approved two bills concerning the taxation of small postal and express shipments valued at up to 150 euros, ordered through marketplaces. The package of bills establishes a legal framework for introducing e-commerce taxation rules in Ukraine, similar to those currently in effect in the European Union. The adoption of these documents by the Verkhovna Rada will allow for the implementation of EU standards and pave the way for financing from partners amounting to approximately 4 billion euros, which is part of the cooperation program with the IMF and a condition for macro-financial support from the EU. Among the advantages of the bills are the creation of equal conditions for Ukrainian producers, compliance with EU standards, and expected additional budget revenues of about 10 billion UAH in the next year. The bills propose to introduce special taxation rules for remote sales of goods through marketplaces, impose VAT on the import of goods in international postal and express shipments starting from 0 euros, and maintain VAT exemption for non-commercial packages valued at 45 euros. The timelines for the implementation of the provisions of the Tax and Customs Codes have been changed to no earlier than July 2027.