Incoming parcels worth over EUR 100 subject to 20% VAT in Ukraine from July 1

From July 1, parcels worth more than EUR 100, delivered to individuals in Ukraine from abroad from a single sender, will be subject to value added tax (VAT, 20% of the cost).

This is provided for by Law No. 2628-VIII on amendments to the Tax Code of Ukraine.

At the same time, the untaxed threshold value of parcels for legal entities and individual entrepreneurs will remain at EUR 150.

To calculate the price of a parcel, the official rate set by the National Bank of Ukraine (NBU) at 00:00 on the day of the submission of the customs declaration or determination of tax obligations shall be applied.

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The customs value of parcels is set to be the tax base for legal entities and individual entrepreneurs, while the invoice value – for individuals.

Postal operators and companies providing international parcel delivery services have already started notifying their customers about changes in the rules for customs clearance of such parcels.

As was earlier reported, in November 2018, the Verkhovna Rada, Ukraine's parliament, along with the national budget for 2019, passed bill No. 9260 on amendments to the Tax Code and other legislative acts. In particular, among other things, the document lowered the tax-free cost of a parcel (online purchases for individuals) from EUR 150 to EUR 100. The amendment was to come into force on July 1, 2019.