On 22 October, President Volodymyr Zelenskyy signed Laws No. 4903-IX, No. 5025-IX and No. 5026-IX, which amend the rules on the taxation of certain purchases made via overseas marketplaces and income generated through digital platforms. This is confirmed by the draft legislation details on the Verkhovna Rada’s website.
Briefly about the main points
- Three laws on international online purchases and digital platforms have been signed.
- VAT 20% will be included in the price of goods under a special procedure.
- The concession for non-commercial consignments up to 45 euros remains in place.
- The rules for platforms will, for the most part, come into force on 1 January 2027.
- The new regulations for international shipments will come into force no earlier than July 2027.
Which laws has the President signed?
Law No. 4903-IX The Verkhovna Rada passed the legislation on 9 June. It sets out the rules for the taxation of income received via digital platforms and provides for mechanisms for the exchange of tax information. Parliament passed Laws No. 5025-IX and No. 5026-IX on 15 October; these amend the Tax and Customs Codes with regard to the remote sale of goods via international postal and express deliveries.
The changes affect customers of overseas online shops, sellers and service providers on digital platforms, as well as the operators of these platforms. The summaries of all three bills state that they were returned to parliament on 22 October bearing the President’s signature.
How will VAT on purchases via marketplaces change?
The new rules apply to goods purchased via marketplaces and imported via international postal or express deliveries. For such distance sales with a total invoice value of up to 150 euros, VAT at a rate of 20% must be included in the order total at the time of placing the order.
The tax must be calculated and paid to the budget by the marketplace, the online platform or its authorised intermediary in Ukraine. Therefore, a buyer who places an order using this procedure will not have to pay VAT separately at the post office, although the tax will be included in the final price of the goods.
The exemption remains in place for non-commercial consignments valued at up to 45 euros, as well as for unaccompanied luggage valued at up to 150 euros. Separate arrangements apply to defence-related goods. According to clarification from the State Customs Service, the new rules for consignments will come into force no earlier than July 2027.
What types of revenue will platforms be required to report to the State Tax Service?
The key provisions of the law on digital platforms and the special tax regime are to come into force on 1 January 2027. Platform operators will be required to identify taxable sellers, collect the data specified by law, register with the State Tax Service and submit reports in accordance with the established rules.
Reporting obligations cover, in particular, the sale of goods, the provision of services, and the letting of property and vehicles. Under the special regime, the platform operator will withhold 10% personal income tax as a tax agent. This rate is not a one-size-fits-all rate for all income generated via the platform: its application depends on criteria laid down by law.
The €2,000 threshold has different implications under different regulations. It relates to the reporting rules for platforms and, according to a parliamentary clarification, to the exemption of certain income from the sale of goods; it is not a general tax-free limit for any earnings generated through the service.
International data exchange and expected revenue
The international automatic exchange of income information via platforms is provided for by law as a mechanism for future cooperation. Its implementation will depend on Ukraine’s accession to the DPI Multilateral Agreement or another qualifying international agreement. At the same time, operators’ reporting to the State Tax Service is a separate domestic mechanism.
According to the Ministry of Finance’s estimates, new VAT model for online sales could generate around 10 billion hryvnias in additional revenue per year. The ministry plans to channel these funds into a special state budget fund to meet the needs of the Armed Forces; however, this is a forecast that will depend on the volume of orders and the administration of the tax.
Links with EU and IMF programmes
The tax changes are linked to Ukraine’s international obligations under the European Union’s financial support programmes and the structural conditions of the IMF programme. The European Commission is assessing compliance with legislative and other requirements for further disbursements under the programme Ukraine Support Loan.
The signing of laws is one of the necessary steps, but decisions regarding specific payments depend on a wider range of conditions and checks. For buyers, the practical change will be that VAT is included in the price of the relevant online orders, whilst for platform users, it will involve standardised reporting and the platform acting as a tax agent in the cases provided for.
