On 15 October, the Verkhovna Rada of Ukraine adopted at second reading and in full a package of draft laws that change the procedure for taxing international postal and express consignments and distance sales of goods. These are draft law No. 16051-1 on amendments to the Tax Code and No. 15460 on amendments to the Customs Code of Ukraine.
The new provisions introduce special VAT rules for distance sales of goods via marketplaces where the total invoice value of a consignment does not exceed 150 euros. VAT on the import of goods in international postal and express consignments will apply from a zero value threshold.
The obligation to calculate and pay VAT to the budget is placed on the marketplace (electronic interface operator). If the marketplace is a non-resident, it must appoint an intermediary in Ukraine who will be jointly liable for settlements with the budget. The law allows for the designation of several such intermediaries.
A VAT rate of 20% will be automatically included in the price of the goods when purchasing on a marketplace platform, so the procedure for the recipient to obtain the parcel will remain unchanged. At the same time, there is provision for the possibility of exempting from VAT goods purchased for security and defence needs, including by refunding the VAT paid to an individual who has purchased such goods under distance selling rules.
The current VAT exemption is retained for non-commercial international parcels worth up to 45 euros. The rules for VAT exemption on goods in unaccompanied baggage up to 150 euros also remain unchanged — these may be personal belongings or other goods that a person sends across the customs border separately from themselves.
Following adoption by parliament, the next step will be the signing of the laws by the President of Ukraine and preparations for their practical implementation. The new rules are to enter into force no earlier than July 2027. According to the Ministry of Finance of Ukraine, these changes are intended to level the playing field for Ukrainian and foreign businesses and bring the taxation system for e-commerce closer to European standards, in particular through the introduction of a Ukrainian analogue of the IOSS system.