Rada passes VAT on international parcels under €150

What happened

On 15 October Ukraine’s parliament passed a bill ending the tax relief on international parcels worth up to €150. BBC News Ukraine reported 252 MPs in favour (minimum 226) and three against. The law still requires the president’s signature.

Goods from foreign marketplaces (AliExpress, Temu, Amazon and others) will face 20% VAT regardless of price. For parcels under €150 the platform must assess and pay the tax at purchase. Non-commercial parcels between individuals worth up to €45 under set conditions remain VAT-free.

Why it is being done

The government and the relevant committee linked the rule to commitments to international partners and budget needs. Finance Minister Serhii Marchenko told parliament about a liquidity crisis and funds for the army and public sector. The prime minister had earlier said part of planned external financing had not arrived, partly because Kyiv missed commitments — including ending the parcel relief.

Authors and committee chair Danylo Hetmantsev argued the relief had long been abused to split consignments and effectively smuggle goods. The EU has had no such relief since 2021; the government expects about UAH 10 billion a year in extra revenue.

Criticism

Opponents said that in wartime cheap marketplaces help millions buy clothes, parts and power banks, and that 20% will fall on shoppers. Some MPs mentioned military purchases of drone components. Authors replied that automatic platform collection and the €45 non-commercial exemption should protect small buyers.

Why it matters

The tax change is part of “homework” for external financing in a tight budget year. It will also affect everyday online shopping and military logistics; full rollout timing, according to media briefings, is deferred (not before mid-2027 after a Cabinet decision, per some explainers).