Ukrainian parliament approves in first reading VAT on foreign marketplace purchases
On 16 September, the Verkhovna Rada voted in first reading for a package of bills introducing VAT on goods bought through foreign marketplaces, regardless of value. 273 MPs backed the Tax Code amendment and 267 supported a separate customs bill. Finance Minister Serhiy Marchenko said the legislation is part of Ukraine's obligations to the IMF and the EU and warned that the country has already missed a €4 billion tranche, with an October tranche still contingent on passage.
Key points
- 273 MPs voted in favor of the Tax Code amendment (draft №16051-1) in first reading.
- 267 MPs backed the separate customs bill (№15460) in first reading.
- VAT would apply to goods purchased via foreign marketplaces regardless of value; for purchases up to €150 the tax would be calculated and paid by the platform.
- Non-commercial parcels valued up to €45 would remain VAT-exempt.
- Finance Minister Serhiy Marchenko said the bills are part of Ukraine's commitments to the IMF and the EU and that passing them is a condition for a €3.7 billion EU macro-financial assistance tranche.
- Marchenko said Ukraine has already missed a €4 billion tranche in September and that an October disbursement depends on adoption.
- Implementation is planned no earlier than 1 July 2027; the bills still need a second reading and final adoption.
Why it matters
The legislation is tied to Ukraine's external financing: passage is a condition for a €3.7 billion EU macro-financial assistance tranche and broader IMF-linked support, after a €4 billion tranche expected in September was already missed. It is also expected to generate roughly 10 billion UAH per year in budget revenue and to require major foreign marketplaces to register Ukrainian entities to remit the tax. Final adoption still requires a second reading, and the rules are not planned to take effect before 1 July 2027.
What happened
On 16 September, the Verkhovna Rada approved in first reading a bill amending the Tax Code (draft №16051-1) to introduce VAT on goods purchased via foreign marketplaces, regardless of value, with 273 MPs voting in favor. For online purchases up to €150, VAT would be calculated and paid by the electronic platform, while non-commercial parcels up to €45 would remain exempt. The same day, the parliament also backed in first reading a separate customs bill (№15460) on new customs clearance rules for international postal and express shipments, with 267 votes in favor. The bills still require a second reading and final adoption. Finance Minister Serhiy Marchenko said the package is part of Ukraine's obligations to the IMF and the EU, noted that the September €4 billion tranche had already been missed, and said marketplaces like Amazon, eBay, Temu, and AliExpress would have to register Ukrainian entities to pay the tax. The new rules are planned to take effect no earlier than 1 July 2027, and implementation is expected to bring in around 10 billion UAH per year.
Background
Previous attempts to pass parcel-taxation legislation in May, late June, and on 1 September failed before this third-attempt success in first reading. On 1 July, EU duties of €3 per parcel valued up to €150 came into force for previously duty-exempt parcels. Moldova is reported to be set to begin charging 20% VAT on online purchases up to €150 from 1 October, part of a regional trend toward taxing low-value imports.