The EU and the IMF are demanding tax reform from Ukraine in exchange for €8.4 billion, according to Bloomberg
The European Union and the International Monetary Fund have set a new condition for Ukraine to receive part of its financial aid: a change in the rules governing the taxation of international parcels. This involves expanding the list of items subject to a 20% VAT.
This was reported by Bloomberg.
According to the publication’s sources, the tax requirement pertains to the macro-financial component of the €8.4 billion aid package. Overall, the EU’s new support program for Ukraine is scheduled for 2026–2027 and could reach approximately €90 billion.
To receive the funding, Kyiv must adopt legislative changes regarding the taxation of foreign parcels.
It is expected that the first tranche of aid could be provided as early as June, the second in September, and the third by the end of the year after the necessary reforms are implemented.
According to sources, this requirement mirrors the IMF’s conditions for another $700 million financial assistance program. The European Commission is coordinating some of its requirements with the International Monetary Fund.
The new aid package provides for financing the state budget deficit, economic support, infrastructure restoration, defense spending and procurement, and servicing the national debt.
Funding is planned to be provided in the form of concessional loans, partially as grants, and in tranches over several years, subject to the implementation of reforms and anti-corruption requirements.
The European Union insists on stricter control over the use of funds and linking specific disbursements to the implementation of reforms.
Specifically, this involves tax reform, de-shadowing the economy, customs reform, judicial and anti-corruption reforms, and improving VAT administration.
International partners believe that Ukraine should gradually increase its own budget revenues and reduce its dependence on foreign aid.
Since the start of the full-scale war, the EU has become one of Ukraine’s main donors, providing tens of billions of euros in macro-financial support, military aid, and funding for humanitarian and energy programs.
The European Union is currently preparing to take one of the largest financial steps in support of Ukraine since the start of the full-scale war. As early as May 18, EU countries may finalize the terms of a €90 billion loan for Kyiv.
The European Union may make the first payment to Ukraine as early as next week as part of a 90-billion-euro financial aid package.
