Zelenskyy signed a law on VAT for online purchases from abroad
President Volodymyr Zelenskyy has signed laws that change the rules for taxing goods ordered through foreign marketplaces. Under the new rules, a 20% VAT will be charged on such purchases regardless of their value, starting from the first euro. At the same time, non-commercial packages valued at up to 45 euros will remain tax-free, and the new rules are set to take effect no earlier than July 2027.
Volodymyr Zelenskyy signed Laws No. 5025-IX and No. 5026-IX. These laws amend the Tax and Customs Codes and establish new rules for the taxation of international parcels. Earlier, on October 15, the Verkhovna Rada approved the corresponding package of bills No. 16051-1 and No. 15460 in the second reading and as a whole. The laws change the rules for taxing goods that Ukrainians order online from abroad and receive by mail or through express delivery services.
However, the laws will not take effect immediately after being signed. According to available information, the new system is scheduled to launch no earlier than July 2027. Until then, buyers will be able to follow the current rules.
How the tax on purchases will be calculated
The main change is that VAT on imported goods in international postal and express shipments will be calculated starting from the first euro. In other words, there will no longer be a general exemption from this tax for low-value purchases. For goods ordered through marketplaces with a value of up to 150 euros, a separate tax payment procedure has been established. The tax will be calculated and paid by the electronic platform through which the buyer places the order.
If the marketplace is registered outside Ukraine, it will be required to appoint an intermediary in Ukraine. This intermediary, together with the platform, will be responsible for settlements with the state budget. The value-added tax rate will be 20%. The plan is to automatically include it in the price of the goods at the time of purchase on the marketplace’s website or app.
For the buyer, this means that the tax will be factored in at the time of payment. The process of receiving the package itself should not change: there will be no need to process it separately at the post office due to the new rules.
Which Packages Will Be Exempt from Tax
Despite the new rules, some shipments will continue to qualify for tax exemptions. In particular, non-commercial packages valued at up to 45 euros will remain VAT-exempt. This applies to shipments not related to the sale of goods. For example, this includes gifts or other items that one individual sends to another for personal use. To qualify for the exemption, the conditions established by law must be met.
A separate exemption has been provided for goods in unaccompanied baggage valued at up to 150 euros. These are items that cross the customs border separately from the person, for example, when they are transported or shipped without the owner being physically present with the shipment. The law also provides for the possibility of VAT exemption for goods intended for security and defense purposes. In certain cases, VAT already paid by an individual may be refunded.
Therefore, the new rules do not mean that absolutely every package from abroad will automatically be taxed. Everything will depend on the purpose of the shipment, its value, and the procedure under which it crosses the customs border.
Where the Money from the New Tax Will Go
According to the law, VAT revenues from distance sales of goods shipped across Ukraine’s customs border are to be allocated to a special fund within the state budget. These funds are to be used to meet the needs of the Armed Forces of Ukraine.
The Ministry of Finance expects that the new system will bring in an additional 10 billion hryvnias to the budget each year. These are projected revenues, not a guaranteed amount: the actual result will depend on the volume of online trade and tax payments after the system is launched.
Why Ukraine Is Changing the Rules
The Ministry of Finance explains that the reform is not solely about generating additional budget revenue. It is also intended to create a more level playing field for Ukrainian sellers and foreign online retailers. Currently, goods from abroad may have a price advantage due to differences in tax rules. The new approach is intended to bring e-commerce conditions in Ukraine closer to those in effect in European Union countries.
Finance Minister Serhiy Marchenko stated that the changes are part of the cooperation program with the International Monetary Fund and are linked to the conditions of the EU’s macro-financial assistance. The reform also provides for the introduction of a Ukrainian equivalent to the European IOSS system. In the European Union, this mechanism allows for the payment of VAT on certain goods sold remotely and imported from outside the bloc, without requiring the buyer to pay the tax separately upon receipt of the package.
Thus, the signed laws change the approach to taxing foreign online purchases. VAT will be charged starting from the first euro, and for purchases made through marketplaces valued at up to 150 euros, payment will be handled through the platforms themselves. At the same time, non-commercial shipments valued at up to 45 euros will remain tax-free, and the new rules are not expected to take effect until July 2027 at the earliest.
The Verkhovna Rada of Ukraine has adopted, in the second reading and as a whole, draft laws that repeal the tax exemption and introduce 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.
Ukraine may change the rules for taxing international packages, specifically orders from marketplaces valued at up to 150 euros. On October 6, the relevant committee of the Verkhovna Rada recommended that parliament adopt the corresponding package of bills in the second reading and as a whole. However, the new rules are not yet in effect—they are proposed to be implemented no earlier than July 2027.
