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Taxation of all foreign parcels from marketplaces – Hetmantsev introduced bills

Published by Vadym Karpus

Danylo Hetmantsev («Servant of the People»), Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, has registered in the Verkhovna Rada draft laws on value added tax (VAT) and customs duty on postal items arriving in Ukraine. As said MP, he did it «at the request of business – ACC, EBA, FEU, APITU, URB, RAU, CCI of Ukraine». And the texts of the drafts on amendments to the Customs and Tax Codes are fully developed by the relevant business associations».

In short, the new legislators’ regulations provide for VAT taxation of all parcels from abroad, regardless of value. However, import duties on such parcels will be levied only if the value of the goods exceeds €150.

«Goods purchased by citizens on marketplaces or other similar platforms are subject to VAT regardless of their value. At the same time, import duties on such goods will be levied only if their value exceeds EUR 150».

There is only one exception – if an individual receives a parcel from abroad from another individual and its value does not exceed €45.

«Citizens can receive goods worth up to EUR 45 without being subject to VAT, provided that such goods are sent to them by individuals without any payment and without commercial purpose», Danylo Hetmantsev noted.

To facilitate VAT administration and speed up customs clearance of parcels, Hetmantsev suggests:

  • similarly to the IOSS mechanism in the EU, introduce the possibility of paying VAT directly by the supplier of goods or by a marketplace or other similar platform that facilitated the supply of such goods.
  • introduce a new customs declaration for low-value goods with a data set similar to the H7 customs declaration used in EU countries. At the same time, the current forms of documents for declaring parcels will continue to be used.

«Payment of VAT by the supplier of the goods or the marketplace will eliminate the need for additional customs payments by the buyer during customs clearance and will help speed up customs procedures,» says Getmantsev.