The Verkhovna Rada has approved at first reading a bill to amend the Tax Code of Ukraine on the specifics of value added tax (VAT) for distance sales of goods that are moved (sent) across Ukraine’s customs border in international postal and express consignments. The vote was 273 in favour.
The document amends the Tax Code of Ukraine and proposes introducing VAT on goods purchased via foreign marketplaces, regardless of their value. For online purchases worth up to €150, the electronic platform will calculate and pay the VAT.
Non-commercial parcels worth up to €45 are proposed to remain VAT-free.
The changes will take effect no earlier than July next year.
Finance Minister Serhii Marchenko stressed that the draft laws amending the Tax and Customs Codes are part of international commitments. He said there was “nowhere left to drag this out”, according to the session broadcast.
At present, a decision is being prepared that would allow the country to live under conditions of a liquidity crisis, but this significantly affects the ability of central executive bodies and local budgets to carry out their responsibilities.
“It is very difficult to explain to anyone why we cannot meet these commitments. The price of the issue today is not receiving €4 billion as early as September. We were supposed to receive it, but we will no longer get it. We urgently resubmitted these bills on the assumption that, if we can secure support for this bill, we will have the opportunity — a chance — to receive these funds in October. There are no options to delay any further. I strongly urge you to find a way to support (the bills. – Ed.) on amendments to the Tax Code and the Customs Code on the taxation of parcels,” he said.
- In last night’s evening address, the President said the bills planned for this week are of national importance because partner funding depends on them. It concerns seven bills, and “each of them is needed to finance the state budget deficit”.
- “This is a matter of national importance that concerns everyone — absolutely everyone in Ukraine — not someone in particular: not a separate party, group or individual. Some things may be difficult, may be unpleasant and unpopular. But right now, without these things it is impossible. It is impossible to fully meet the needs of our defence and Ukraine’s resilience. Ukraine is more than any party, or interest, or PR strategy,” he said.
- The First Deputy Speaker of the Verkhovna Rada, Oleksandr Korniyenko, said that the parcels bill is part of the macro-financial assistance package, where the failure of even one document would mean the failure of them all.
- MPs have tried several times this year to abolish the preferential customs clearance for parcels that applied to consignments worth up to €150.