The Rada has once again failed to pass a tax on packages valued at up to €150
On September 1, the Verkhovna Rada did not pass the bills to impose VAT on imported packages starting from the first euro. Parliament returned the bills to the Cabinet of Ministers for further revision.
During its session on Tuesday, the Verkhovna Rada once again failed to pass bills that would eliminate the tax exemption for parcels valued at up to 150 euros.
Bill No. 15460, “On Amendments to the Customs Code of Ukraine Regarding the Specifics of Customs Formalities for Goods Transported (sent) across the customs border of Ukraine in international postal and express shipments” was supported by 194 members of parliament.
The Rada also failed to refer the bill for a repeat first reading—216 deputies voted in favor of this. At the same time, with 226 votes in favor, it was sent back to the Cabinet of Ministers for further revision.
The draft law introduced amendments to the Customs Code of Ukraine, which regulates customs procedures, border clearance rules, and the 150-euro threshold for import duties.
Under the bill, VAT was to be imposed on imported goods purchased through online marketplaces, starting at 0 euros.
Currently, international shipments valued at up to 150 euros are not subject to import VAT or customs duties. Under the proposed rules, the threshold itself would remain, but its application would change: goods valued at up to 150 euros would be exempt only from customs duties. Thus, VAT at the standard rate of 20% would be charged starting from the first euro of the goods’ value.
For shipments valued at more than 150 euros, the basis for calculating customs duties would change. The duty would be calculated at a rate of 10% of the parcel’s total invoice value, rather than just on the amount exceeding 150 euros.
At the same time, private, duty-free gifts valued at up to 45 euros would continue to be tax-exempt. The new rules would not apply to the remote sale of alcohol and tobacco.
The government’s draft bill was intended to establish the customs and technical mechanisms necessary to implement this reform. The document also established liability for marketplaces: the obligation to calculate and pay VAT would fall on the marketplaces themselves or their intermediaries, rather than on the Ukrainian buyer.
Declaration of goods in postal and express shipments in the case of their distance sale would be carried out by the postal operator or express carrier based on special registries.
Requirements were to be introduced for the accounting of marketplaces and their representatives in Ukraine for non-resident marketplaces, as well as a special guarantee for the application of the distance selling scheme.
A transition period was envisaged to allow postal operators, express carriers, and marketplaces to adapt. During the first year, administrative liability would not apply for unintentional errors related to incomplete or late payment of VAT on parcels valued at up to 150 euros, provided the tax itself was paid in full.
In addition, the Rada failed to pass Bill No. 15112-d “On Amendments to the Tax Code of Ukraine Regarding the Taxation of E-Commerce Transactions with Value-Added Tax.”
The bill was intended to amend the Tax Code of Ukraine, which establishes rules for the calculation and payment of VAT on e-commerce and parcels.
This comes amid a visit by an IMF mission, and the issue of tax on parcels is covered by international obligations.
“It’s actually an interesting tradition to derail IMF-backed bills whenever they come to Ukraine on a mission,” commented Yaroslav Zheleznyak, a member of parliament from the relevant committee.
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