Leading business associations in Ukraine are calling on the Verkhovna Rada to urgently implement taxation on international packages valued up to 150 euros. This move aims to curb significant budget losses and create a level playing field for domestic producers.
The coalition, representing around 10,000 companies, believes that introducing VAT will help retain funds within the Ukrainian economy and support local manufacturers.
Specifically, the European Business Association has urged for amendments to the Customs Code of Ukraine to establish a simplified procedure for administering these customs payments.
Experts estimate that over half (56%) of international packages in 2025 will go untaxed, amounting to approximately 93 billion UAH, leading to a budget shortfall of at least 18.6 billion UAH. Cumulatively, losses since the onset of the war could exceed 43 billion UAH.
“This results in underfunded military and social expenditures, lost jobs in Ukraine, and an under-invested technology sector. The passage of this bill is a matter of economic fairness, the survival of Ukrainian production, and the economic security of the state,”
the Association of Information Technology Enterprises of Ukraine stated.
Support for the proposed legislation has also come from the American Chamber of Commerce in Ukraine, the European Business Association, the Federation of Employers of Ukraine, the Ukrainian Business Council, the Chamber of Commerce and Industry of Ukraine, the Ukrainian Retailers Association, the Ukrainian Association of Light Industry Enterprises, and the Association of Information Technology Enterprises of Ukraine.
As a reminder, in November, Ukraine and the IMF reached a preliminary agreement on a new four-year lending program worth $8.1 billion. Ukraine is required to meet several conditions related to its budget and tax policies.
These conditions include the introduction of taxes on income earned through digital platforms (commonly referred to as the “OLX tax”), taxation on packages valued up to 150 euros, and the implementation of VAT for individual entrepreneurs.
Ukrainian business associations are advocating for a tax on international packages to mitigate budget losses and support local industries. The proposed legislation is seen as vital for economic stability and fairness in the market.