On September 16, the Verkhovna Rada approved in the first reading draft laws No. 15460 and No. 16051-1, which would change VAT rules for the distance sale of goods from abroad. In particular, the bills propose introducing VAT on goods worth up to €150 purchased by individuals through electronic platforms.
This was reported by the press service of the Verkhovna Rada of Ukraine.
The bills cover distance sales of goods, excluding excisable products, with a total invoice value not exceeding the equivalent of €150 and shipped from another country to an individual in Ukraine.
The company operating the electronic interface through which the goods were purchased would be responsible for calculating and paying the VAT.
At the same time, goods worth up to €150 imported into Ukraine in unaccompanied baggage would be exempt from VAT.
International postal and express shipments worth up to €45 would also remain VAT-exempt if they are sent by one individual to another free of charge and are intended for the recipient’s personal or family use.
A separate VAT exemption is proposed for distance sales of goods intended for security and defense needs, including energy equipment and goods for Ukraine’s Defense Forces whose import is already exempt from VAT.
In addition, draft law No. 16051-1 proposes directing VAT revenue from distance sales of goods shipped to Ukraine through international postal and express deliveries to a special fund of the state budget to support the needs of the Armed Forces of Ukraine.
The Verkhovna Rada said the changes are intended to bring Ukrainian tax legislation into line with European Union rules. Their adoption is also part of Ukraine’s commitments to the EU and the IMF.
