Cabinet Submits Bill on VAT for International Packages up to 150 Euros

The Cabinet of Ministers has resubmitted a bill to the Verkhovna Rada regarding the introduction of VAT on international postal shipments valued up to 150 euros. This will harmonize Ukraine's legislation with EU norms and create equal conditions for all market participants. The exemption for private gifts up to 45 euros will remain in effect. Prime Minister Serhiy Korotkyi noted that the cancellation of the exemption will support domestic producers and provide over 10 billion UAH in additional budget revenues annually. These funds are planned to be directed towards financing defense and economic development. If the bill is adopted, the new rules will come into effect no earlier than 2027. During this time, businesses and postal delivery operators will be able to adapt to the new requirements. In May, the Verkhovna Rada did not support key amendments to bill No. 12360 concerning the cancellation of tax exemptions on international packages. The cancellation of the exemption is one of the conditions for revising the IMF program, which insists on expanding the tax base. A 20% VAT is expected to be introduced on all imported goods in postal shipments, which will be automatically included in the final price. The exemption will only be preserved for packages between individuals up to 45 euros.

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