The Verkhovna Rada has ratified a large-scale financial agreement with the European Union, which provides Ukraine with €90 billion in loan support. Along with the financing, the document contains a number of tax and economic reforms that could significantly change the rules for businesses, individual entrepreneurs and online trading.
What does the agreement with the EU envisage?
Among the key provisions of the document:
- cancellation of duty-free import of international parcels;
- taxation of income from digital platforms;
- extension of the 5% military tax for another three years;
- reforming the simplified taxation system;
- strengthening the fight against business splitting schemes to minimise taxes.
In fact, we are talking about a large-scale adaptation of the Ukrainian tax system to European standards and the requirements of international lenders.
Duty-free parcels may disappear
One of the most controversial provisions is the abolition of the preferential regime for international parcels. This means that goods from abroad can be taxed even if their value is low.
The decision can have a significant impact on:
- online shopping of Ukrainians;
- orders from AliExpress, Temu, and Amazon;
- the work of small businesses that use international delivery.
The government explains this as a necessity:
- Increase in budget revenues;
- fight against shadow imports;
- protecting Ukrainian businesses from unequal competition.
New changes await individual entrepreneurs
A separate block concerns the reform of the simplified taxation system, primarily the third group of individual entrepreneurs.
The document states that:
- Elimination of schemes of artificial break-up of companies;
- strengthening control over turnover;
- revision of the simplified taxation mechanisms.
Experts suggest that this could lead to:
- Increased tax burden;
- Tighter control over entrepreneurs;
- the gradual narrowing of optimisation opportunities through the sole proprietorship model.
Taxes for digital platforms
Another important change is the taxation of income from digital platforms.
We are talking about:
- marketplaces;
- online sales services;
- digital platforms for services;
- international IT services.
Ukraine is gradually integrating European taxation rules for the digital economy, which will allow the state to receive additional budget revenues.
Military duty will remain longer
The agreement also provides for the extension of 5% military tax for another three years.
The authorities explain this:
- high defence spending;
- the need for stable funding for the army;
- long-term security risks.
What does ratification mean?
Ratification opens Ukraine's access to a large-scale EU funding, The number of employees required for:
- budget support;
- defence;
- social benefits;
- economic recovery.
However, along with the funds, Ukraine is also committing itself to structural reforms, some of which may cause serious debate among business and society.
Economists say that in the coming years, Ukraine's tax system will gradually become more stringent and closer to European models of administration.
