Ukrainian buyers using international marketplaces such as AliExpress and Temu are facing an increase in product prices. In mid-October, the Verkhovna Rada adopted, and the president signed, a law abolishing the VAT exemption for international shipments valued under 150 euros. However, due to the need for technical upgrades of customs and postal operators' IT systems, the actual launch of the reform has been postponed until at least mid-2027.
How Calculation and Tax Payment Rules Will Change
Previously, the 20% VAT was charged exclusively on the amount exceeding the 150-euro limit, along with a 10% duty on the difference. Now, the abolition of the exemption will affect the segment of cheap shipments. The calculation and payment of the fee will be assigned to electronic trading platforms or their official representatives in Ukraine, who will bear joint and several liability for settlements with the budget.
At the same time, the new rules will not affect non-commercial shipments between individuals valued under 45 euros, as well as unaccompanied baggage up to 150 euros. Additional revenues from the innovation are planned to be directed to a special state budget fund used exclusively to finance defense forces needs.
International Obligations and Harmonization with the European Union
Experts and government representatives emphasize that the adoption of the law was largely political and directly linked to meeting benchmarks of the IMF cooperation program and the conditions of EU macro-financial support. Specifically, on November 5, the European Commission transferred 4.36 billion euros to Ukraine under the Ukraine Support Loan, which included funds for both current macro-financial needs and the defense sector.
Furthermore, the measure aims to synchronize Ukrainian legislation with European standards. Since July 2021, the EU has abolished VAT exemptions for low-value imports, and starting in mid-2026, a temporary duty was introduced. Without similar steps, Ukraine risked turning into a gray logistics corridor for importing cheap goods into the European Union.
Financial Expectations and Implementation Prospects
According to preliminary government estimates, the fiscal effect from abolishing the duty-free exemption should amount to about 10 billion hryvnias annually. At the same time, Ministry of Finance analysts point out that in 2025, the volume of exempt shipments reached 92.9 billion hryvnias, accounting for about 55.5% of total parcel imports, while potential budget losses reach 18.6 billion hryvnias assuming theoretical purchase volumes remain unchanged.
The head of the Verkhovna Rada Committee on Finance, Tax, and Customs Policy, Danylo Hetmantsev, considers government calculations underestimated and forecasts a higher economic effect. The final deadlines for launching the mechanisms will depend on the speed of completing technical procedures at customs and the readiness of international platforms to administer the tax.
