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The relevant amendments to the Tax Code in the second reading were backed by 236 lawmakers.
The Verkhovna Rada, Ukraine's parliament, has cancelled the so-called "three tax-free parcels" rule, which would allow one person to receive as many as three international parcels a month without paying excise and other taxes.
The relevant amendments to the Tax Code in the second reading (bill No. 9260) were backed by 236 lawmakers with the required minimum of 226 votes, according to the press service of the Ministry of Finance.
The rule was supposed to be introduced from January 1, 2019, but it had to be cancelled as postal operators would be unable to administer such a procedure.
Read alsoNew rules for taxation of parcels from abroad to be applicable from 2019
As was reported earlier, the "three parcels" rule was introduced in December 2017. One person would be able to receive only three international parcels per month without paying taxes. Starting with the fourth parcel, goods in it would be subject to VAT, customs duty and excise taxes. At the same time, the State Fiscal Service agreed it would not be able to control the number of parcels received by each Ukrainian citizen.
What is more, the newly passed amendments to the Tax Code lowered the tax-free cost of a parcel to EUR 100 (now it is EUR 150). However, the transition period will be in effect from January 1 to June 30, 2019, when the EUR 150 limit will still be applicable.
Earlier, Ukraine's Finance Ministry together with the State Fiscal Service wanted to introduce taxation for international parcels imported into Ukraine if their value is higher than EUR 22. However, the initiative was once again rejected by the Finance Ministry because of the public's "fierce criticism," despite the fact that lobbyists referred to the EU rules where parcels whose value is higher than EUR 22 are subject to taxation.