Ukraine to End VAT Exemption on Imported Goods Bought via Foreign Marketplaces

The Ukrainian government has approved and submitted a bill to parliament, the Verkhovna Rada, that would change how imported goods, brought through foreign online marketplaces, are taxed. The decision was announced on Wednesday, July 29, by Ukraine’s recently appointed Prime Minister Serhiy Koretsky, who said that the bill would align the country’s tax rules with EU standards, as Ukraine continues its path toward EU membership.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. “Private gifts worth up to €45 [roughly $51,5] that are sent free of charge would still remain tax-free,” Koretsky said, adding that “the change is meant to create equal conditions for all market participants, support Ukrainian producers, and ensure fair competition.” VAT exemption for imports Under the current system, imported goods worth up to €150 (around $172) that enter Ukraine through international postal shipments are exempt from value-added tax (VAT). The proposed bill would remove that exemption. According to Koretsky, authorities estimate that the reform could bring in more than Hr. 10 billion (roughly $223.3 million) in additional annual revenue. However, even if lawmakers approve the measure, it would not take effect before 2027, giving businesses, marketplaces, and delivery operators time to prepare. According to Koretsky, the Finance Ministry has also been “instructed to work with lawmakers and representatives of all parliamentary factions and groups.” Authorities are expected to prepare the issue and explain the draft bill to “the public in detail.” Other Topics of Interest Zelensky Meets Tusk in Lublin, First Poland Visit Since Diplomatic Fallout Zelensky and Tusk discussed missile defense and the safety of Ukrainian refugees in Poland during Wednesday’s talks in Lublin. Koretsky’s first major fiscal move The Verkhovna Rada has approved the appointment of Koretsky, the former CEO of state-owned energy company Naftogaz, as the country’s new prime minister on July 16, as part of a broader cabinet reshuffle. His appointment followed the resignation of former Prime Minister Yulia Svyrydenko. The parliament voted on July 13 to dismiss her, automatically triggering the resignation of the entire Cabinet of Ministers. President Volodymyr Zelensky praised Koretsky as “most prepared,” given his experience working for state-owned companies. During Zelensky’s sweeping government reshuffle, former Defense Minister Mykhailo Fedorov was ousted as well, with his resignation sparking nationwide protests. Despite ongoing protests, Zelensky said on Tuesday, July 28 that he is unwilling to reinstate Fedorov. Instead, he offered him to become the “deputy prime minister for military innovations” on July 23 – an offer Fedorov turned down. As the reason for his dismissal, Fedorov cited an unresolved conflict with the former Commander-in-Chief of the Armed Forces of Ukraine (AFU), Oleksandr Syrsky. Since then, Syrsky was dismissed as well, with Maj. Gen. Mykhailo Drapaty replacing his post on July 21. Ukraine’s EU path and political uncertainty Following the opening of the Fundamentals cluster on June 15, and the External Relations cluster on July 14, Ukraine’s accession bid has moved from planned talks to actual negotiations. However, the latest government reshuffle has created uncertainty over who will lead the process, with Vsevolod Chentsov, Ukraine’s permanent representative to the EU, and Taras Kachka, deputy prime minister of Ukraine for European and Euro-Atlantic integration, swapping their roles. On July 22, Hungary refused to approve EU accession clusters for the second time for Ukraine and Moldova, ultimately postponing the next attempt to Sept. 1. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 97% of readers are outside of Ukraine – make it truly Ukraine’s global voice.