The newly adopted law (No. 16051-1) abolishing the value-added tax exemption for international postal shipments valued at up to EUR150 will negatively impact the operations of Ukrainian retailers, importers, and manufacturers, according to Volodymyr Poperechnyuk, co-founder of Ukraine’s largest postal and logistics operator, Nova Poshta.
“People won’t stop importing; they’ll just spend more money. Among other things, they’ll spend money on import brokerage services, which ‘Nova Poshta’ will provide. But there will be less money for retail,” Poperesnyuk said during the event “Business and New Challenges: Dialogues with NV” in Kyiv on Friday.
In his view, there is virtually no alternative to imports, since 99% of goods are produced globally, while Ukraine accounts for only 0.2% of the world’s population.
On Facebook, Poperechnyuk emphasized that instead of raising taxes, Ukraine needs to lower them, as well as pursue deregulation and privatization.
“Our defense capability, development, and true independence directly depend on the business environment,” Poperechnyuk noted.
As previously reported, on October 15, on its third attempt, the Verkhovna Rada adopted in the second reading and as a whole Bill No. 16051-1 on amendments to the Tax Code regarding VAT on e-commerce transactions, which repeals the tax exemption for international postal shipments valued at up to EUR150.
The implementation of the law’s provisions, in conjunction with amendments to the Customs Code (Bill No. 15460) is a condition for Ukraine to receive the next tranche under the program with the International Monetary Fund (IMF) of approximately $0.7 billion and the second tranche of macro-financial assistance from the European Union of EUR3.7 billion as part of the EUR90 billion Loan to Support Ukraine. Under the updated memorandum with the IMF, Ukraine was required to adopt this law by July 2026, and under the initial version—by the end of March, along with other tax regulations—but this structural milestone was not met.
The law provides for the introduction of special VAT rules for distance sales of goods (excluding excise goods) imported via international postal and express shipments to individuals, valued at up to EUR150, where e-commerce platforms or their intermediaries are designated as responsible for calculating and paying the tax.
At the same time, the VAT exemption remains in place for small, non-commercial shipments valued at up to EUR45 sent from individuals to individuals free of charge, as well as for goods in unaccompanied baggage valued at up to EUR150 and goods for security and defense (energy equipment and goods for the defense forces).
Prior to the first reading, during the presentation of the bill, Ukrainian Finance Minister Serhiy Marchenko noted that the implementation of these provisions would generate approximately 10 billion UAH in additional revenue for the state budget annually.
