The government is proposing to reduce the tax-free allowance for free international parcels sent between private individuals from €150 to €45. The changes will apply to gifts for personal or family use, whilst purchases made on foreign marketplaces are set to be subject to 20% VAT from the first euro. The initiative is yet to be considered by the Verkhovna Rada.
Briefly about the main points
- The exemption of up to €45 applies only to free parcels sent between individuals.
- The consignment must not appear to be for commercial purposes.
- There are plans to charge VAT on online purchases at the time of placing an order.
- Declarations must be made by postal operators and carriers.
- The current tax-free threshold of €150 remains in place for the time being.
Which parcels from relatives will be eligible for the concession?
It is proposed that the new threshold apply to C2C consignments — from one individual to another. This may include items sent from abroad by a mother, husband or wife, brother, sister, friends or other close relatives.
To qualify for the concession, goods must be transferred free of charge and be intended for personal or family use. Their quantity and characteristics must not suggest that they are intended for commercial purposes.
If the declared value of a consignment exceeds €45, it may be subject to customs duties as provided for by law. The specific procedure for calculating these duties will depend on the version of the law adopted by Parliament.
VAT will be charged on purchases made on marketplaces from the first euro
It is proposed that gifts exchanged between individuals be treated separately from goods purchased from foreign online shops. For orders placed on platforms such as AliExpress, Temu or Amazon, there are plans to abolish the current preferential threshold entirely.
VAT at a rate of 20% It is proposed that this be included in the price of the goods when the order is placed. The marketplace or its representative is responsible for calculating and remitting the tax to the Ukrainian budget, whilst postal operators and express couriers will declare the goods via special electronic registers.
The Cabinet of Ministers explains that the model is designed to bring legislation into line with EU rules, combat «grey» imports and level the playing field for Ukrainian and foreign sellers. The government estimates the expected additional revenue at approximately 10 billion hryvnia per year.
When might the new rules be introduced?
The Verkhovna Rada is due to consider the customs bill at its first reading on Tuesday. It is being considered alongside the draft No. 15112-d regarding the taxation of e-commerce transactions; in the Parliament’s database, the document has the status «pending consideration».
Under the government’s plan, the system may come into force no earlier than 1 January 2027. Before its launch, the Cabinet of Ministers must separately confirm that customs authorities, postal operators, carriers and marketplaces are ready to operate under the new model.
Pending the final adoption of the legislative amendments and their entry into force, a tax-free allowance of €150 applies to international parcels.
