EU warns Ukraine risks losing €3.7bn tranche without parcels VAT law
The European Commission has warned that Ukraine will not receive a planned €3.7 billion tranche of EU macro-financial assistance expected in early autumn unless it adopts a law removing the VAT exemption for low-value imported parcels. Commission spokesperson Balázs Ujvári said the parcels legislation is one of the conditions for continuing payments under the MFA programme. The warning follows a 1 September vote in the Verkhovna Rada that fell short of the support needed to pass several related draft laws.
Key points
- EU Commission spokesperson Balázs Ujvári said the parcels VAT law is required to continue MFA payments
- A €3.7bn MFA tranche is planned for early autumn
- On 1 September the Verkhovna Rada failed to pass draft law No. 15460 on customs procedures for taxing low-value parcels
- The same day MPs also failed to back draft law No. 15112-d and alternative bills cancelling the VAT exemption on postal shipments up to €150
- Only 194 MPs voted in favour of the bill on VAT for parcels up to €150 — 32 short of the required number
- The parcels law is one of 12 MFA conditions and one of four IMF-required tax bills
- The 2026 MFA target is €8.35bn, of which €3.2bn has already been disbursed
Why it matters
A €3.7 billion EU disbursement to Ukraine is being conditioned on a single domestic tax law, the same legislation the IMF requires to keep its own programme running. With the autumn payout window approaching, the Verkhovna Rada's 1 September failure to pass the bills leaves both EU and IMF support hanging on a parliamentary vote that has already come up short once this year.
What happened
The European Commission has linked Ukraine's next €3.7 billion EU macro-financial assistance tranche, planned for early autumn, to adoption of a law removing the VAT exemption for imported parcels valued at up to €150. Commission spokesperson Balázs Ujvári told reporters that the law is required for continued MFA payments and that it plays a significant role in mobilising budget revenues.
On 1 September the Verkhovna Rada voted on draft law No. 15460, which would have regulated customs procedures for introducing the tax, but the bill did not pass. MPs also failed to support draft law No. 15112-d and alternative bills cancelling the VAT exemption on international postal shipments up to €150. On the main bill only 194 MPs voted in favour, 32 short of the threshold.
The parcels legislation is one of 12 conditions of the EU MFA programme and one of four tax bills the IMF requires Ukraine to adopt. The 2026 MFA target is €8.35 billion, of which €3.2 billion has already been disbursed.
How Ukrainian sources describe it
Both supplied sources are Ukrainian-language Ukrainian media outlets, so a comparison between Ukrainian and international framing cannot be drawn from the supplied source set.
Background
The parcels VAT bill is one of several tax measures Ukraine has been working through under EU and IMF programmes. On 26 May the Verkhovna Rada was also unable to approve cancellation of the VAT exemption for imported parcels up to €150. Since 1 July the EU itself has charged €3 per parcel on consignments up to €150 that were previously duty-free.
In April MPs adopted one of the four IMF-required tax bills, extending the 5% wartime military levy for three years after the war. Draft law No. 15111-d on taxing digital platforms — dubbed the 'OLX tax' — has passed its first reading. From 1 October Moldova will begin charging 20% VAT on online purchases up to €150 from international platforms.