Ukraine must meet specific tax reform criteria to secure its first tranche of a loan from the European Union, according to a European Commission official who spoke anonymously.
The requirements include submitting key tax measures to the Ukrainian Parliament, which involve:
- Implementing VAT on low-value import packages
- Taxation of digital platforms
- Extending the military tax on individual incomes
- Legislation to support the development of industry-specific investment strategies
- Adopting a public finance management strategy
- Submitting an updated Customs Code to the Cabinet of Ministers
- Appointing a new permanent head of the State Customs Service
Some of these measures have already been initiated by Ukraine.
According to sources, the taxation of income from digital platforms is set to be discussed in the upcoming parliamentary session. Legislation regarding the taxation of packages valued up to €150 has been introduced but not yet voted on. Previously, the EU implemented a customs fee of €3 on packages worth up to €150.
On April 14, the President signed a law extending the military tax for three years following the end of martial law. The updates to the Customs Code aim to align it with EU standards.
Details on the €90 Billion EU Loan for Ukraine
On December 19, 2025, EU leaders agreed to support Ukraine with a €90 billion loan for 2026-2027. This loan will be backed by the EU’s budget reserve rather than frozen Russian assets.
On January 14, 2026, the European Commission approved a legislative package enabling the loan to cover Ukraine’s financial and military needs over two years.
On January 21, the European Parliament backed a proposal allowing the activation of extended cooperation for establishing the loan for Ukraine.
On February 11, MEPs voted in favor of three legislative acts facilitating the loan for 2026 and 2027.
However, on February 20, Hungary blocked the EU loan to Ukraine due to the lack of oil transit from Russia through the Druzhba pipeline.
The Ukrainian Foreign Ministry stated that Kyiv informed Budapest about the Russian shelling of the Druzhba pipeline on January 27, and the accusations of Ukraine delaying shipments are unfounded.
Despite this, Hungarian Minister Peter Szijjarto claimed during an EU Council meeting on February 23 that Russia did not shell the pipeline infrastructure and accused Ukraine of halting transit for internal political reasons. Ukraine’s Foreign Ministry criticized Szijjarto for statements favoring Russia.
On February 23, European Commissioner Valdis Dombrovskis confirmed that the EU is not considering alternative options for the €90 billion loan currently blocked by Hungary.
The EU leaders’ summit took place on March 19 in Brussels, where the Hungarian Prime Minister reiterated that Budapest would not support any EU decision favoring Ukraine until the oil transit through Druzhba is restored, including the unblocking of the €90 billion loan.
On April 23, EU member state ambassadors unanimously approved amendments to the Multiannual Financial Framework regulation, which underpins the €90 billion support loan for Ukraine, along with the 20th sanctions package against Russia.
On May 5, Dombrovskis stated that tax reform is part of the negotiations regarding the conditions under which Ukraine would receive macro-financial assistance as part of the €90 billion EU loan.
Ukraine is required to implement several tax reforms to qualify for the first tranche of a €90 billion EU loan. Key measures include VAT on imports and taxation of digital platforms, with some reforms already underway.