The Verkhovna Rada has passed at second reading a bill on the taxation of international online purchases made through foreign marketplaces. This is one of the commitments to international partners on which financial assistance depends.
The bill was supported by 252 MPs. The Verkhovna Rada’s press service reported this.
“The document introduces amendments to the Tax Code of Ukraine and proposes introducing VAT on goods purchased through foreign marketplaces, regardless of their value. For online purchases worth up to €150, VAT will be calculated and paid by the electronic platform. It is proposed that non-commercial parcels worth up to €45 should remain exempt from VAT,” the statement said.
The new rules are to take effect only next year and after a corresponding government decision. For now, the previous rule on preferential customs clearance for goods worth up to €150 will remain in force.
“The sole purpose of this bill is to simplify the procedure for paying VAT for an individual who receives goods in a parcel. So that Ukrainian citizens do not feel any change whatsoever in the taxation system. In other words, they buy a product in one click and the taxation is carried out automatically,” the finance minister said.
To this end, Ukraine will set up registered representative offices of marketplaces, which will be the entities that physically pay the tax. These include Amazon, Temu, AliExpress and other marketplaces.