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Ukraine’s parliament has approved a bill introducing value-added tax (VAT) on goods purchased through foreign online marketplaces, including low-value purchases previously exempt from the tax. Non-commercial parcels worth up to €45 will remain exempt.
The Verkhovna Rada adopted draft law No. 16051-1 in its entirety on October 15, with 252 lawmakers voting in favor, according to the parliament’s official records and European Pravda. The bill is intended to amend Ukraine’s Tax Code and bring the country’s e-commerce taxation rules closer to European Union standards.
Who will pay VAT on purchases under €150?
Under the proposed rules, VAT will apply to purchases shipped from abroad through online marketplaces, including parcels worth up to €150 that were previously exempt.
For purchases valued at up to €150, the electronic platform will calculate and remit the VAT. Non-commercial shipments sent from one individual to another, worth up to €45, will remain exempt. Certain goods intended for the military will also be exempt, according to European Pravda.
Amendment on politically exposed persons
The bill also includes an amendment restoring stricter financial monitoring requirements for politically exposed persons (PEPs).
The amendment reverses provisions previously added to Ukraine’s digital-platform taxation bill that would have limited banks’ ability to maintain enhanced monitoring of former senior officials. Those provisions had raised concerns among European partners and delayed the bill’s signing by President Volodymyr Zelenskyy.
The change is expected to clear the way for the president to sign the digital-platform taxation bill, followed by the legislation on international parcels. Both measures are linked to conditions for financial support from the European Union and the International Monetary Fund.
Background
In September, Finance Minister Serhii Marchenko warned that Ukraine could lose access to a further tranche of EU financial assistance if it failed to adopt the legislation on low-value parcels.
Ukraine expects to receive $29.5 billion in financial support from Western partners by the end of 2026, helping the country cover its budget needs.
The VAT bill has been passed by parliament and is awaiting signature. The related amendments to the Customs Code are also needed for the new rules to operate. The tax changes will not take effect merely because parliament has approved the bill.
