How and When Will Shipments from Temu and AliExpress Become More Expensive Due to the New Tax

The Verkhovna Rada of Ukraine passed, in the second reading and as a whole, bills that eliminate the tax exemption and impose a 20% VAT on commercial online purchases from abroad valued at up to 150 euros. This will affect, in particular, purchases made through the popular marketplaces Temu and AliExpress.

The value-added tax will apply to all small commercial orders of goods from foreign e-commerce platforms that were previously imported tax-free:

•  For a purchase worth 1,000 UAH, the estimated VAT will be 200 UAH (total price: 1,200 UAH).
• For goods worth 2,000 UAH, you’ll have to pay about 400 UAH in VAT.
• For an order of 5,000 UAH, 1,000 UAH in VAT will be charged.

Under the European IOSS model, the responsibility for calculating and remitting the tax falls on the platforms themselves (Temu, AliExpress, etc.), so VAT will be included in the total cost of the goods directly at the time of checkout.

The new rules will not apply to non-commercial shipments between individuals: private parcels and gifts valued at up to 45 euros will remain tax-exempt. Exemptions will also remain in place for certain categories of goods used for defense and energy purposes.

The new taxation system will be implemented no earlier than July 1, 2027, as launching the system requires extensive technical preparation and the configuration of electronic data exchange between marketplaces and Ukraine’s tax authorities.

Source: Website of the Verkhovna Rada of Ukraine.

The Verkhovna Rada passed a bill with 252 votes in favor that provides for the imposition of VAT on goods purchased from foreign online stores. The tax is planned to be levied on purchases regardless of their value, though an exception is provided.

Packages from abroad may become more expensive due to the new VAT.

The relevant committee of the Verkhovna Rada supported the revised bill amending the Tax and Customs Codes. The proposed changes could affect Ukrainians’ purchases on popular online marketplaces.