Parliament Adopts Package of Draft Laws on Taxation of International Parcels in First Reading

On September 16, the Parliament of Ukraine adopted in the first reading a package of revised draft laws on the taxation of small postal and express shipments worth up to EUR 150 ordered through marketplaces: amendments to the Tax Code (Reg. No. 16051-1) and amendments to the Customs Code (Reg. No. 15460).

The draft laws are interrelated and together form a comprehensive legal framework for introducing modern e-commerce taxation rules in Ukraine, in line with European Union approaches.

"This is an extremely important decision that shows our international partners Ukraine's readiness to change and to implement modern European standards. I thank the Members of Parliament for supporting the documents in the first reading, and Ukrainian businesses for their consistent position, payment of taxes, and resilience in extremely difficult conditions, as Russia constantly destroys warehouses and infrastructure. Ahead of us is careful refinement of the draft laws for the second reading. Timely adoption of the final decision by Parliament will finally eliminate the unfairness toward honest businesses and bring Ukraine closer to receiving about EUR 4bn in international financial support for state budget needs," said Minister of Finance of Ukraine Serhiy Marchenko.

Why the changes matter

Fair conditions for Ukrainian business: the changes provide for abolishing the VAT exemption for imported goods purchased through marketplaces, creating a level playing field for Ukrainian and foreign businesses.

Alignment with EU approaches: the new e-commerce taxation model will meet European Union standards, including the use of a Ukrainian equivalent of the EU's IOSS (Import One Stop Shop) system.

Meeting international commitments: Parliament's adoption of the draft laws will bring Ukraine closer to receiving about EUR 4bn in international financial support for state budget needs. The reform is also part of the cooperation program with the IMF (EFF 2026–2029) and a condition of the EU's macro-financial assistance.

Additional budget revenue: the new rules are expected to generate about UAH 10bn in additional revenue next year. The funds will be directed to defense needs.

All VAT revenue from international parcels will go to the special fund of the state budget for the needs of the Armed Forces of Ukraine.

The adopted laws provide for:

• introducing special rules for taxing distance sales of goods through marketplaces where their total invoice value does not exceed €150;
• introducing VAT on imports of goods in international postal and express shipments starting from €0;
• keeping the VAT exemption for non-commercial parcels worth up to €45, in line with EU approaches;
• introducing a list of goods for the military that will be exempt from import VAT in international postal and express shipments;
• entry into force: the Tax Code and Customs Code provisions are to take effect no earlier than July 2027.

A direct request from Ukrainian business

Just before the vote, Ukrainian businesses and leading business associations once again publicly supported abolishing the VAT exemption on parcel imports and called on MPs to adopt the European model for taxing distance sales.

As a reminder, changes to the taxation of international parcels have previously been publicly supported by Ukrainian businesses, as well as by more than 54% of Ukrainian citizens.