EBA calls for the abolition of VAT exemption on parcels

30/ 04/ 2026

The European Business Association calls on the Members of the Ukrainian Parliament to adopt the draft law “On Amendments to the Tax Code of Ukraine regarding the taxation of e-commerce transactions with value added tax”, in particular the provisions abolishing the VAT exemption for parcels. The issue of cancelling the VAT exemption for international postal shipments is not merely a tax matter — it concerns economic fairness, the survival of Ukrainian businesses, and defence funding. It is also about fulfilling Ukraine’s commitments to align its tax and customs legislation with EU rules. The EU abolished similar exemptions back in 2021, recognising them as a source of fiscal losses and market distortions. Ukraine cannot declare a course towards European integration while maintaining provisions that directly contradict the European model. Moreover, from 1 July 2026, the EU will abolish even the customs duty exemption for such goods. The Association has repeatedly supported the Government in this initiative and has called on the Members of the Ukrainian Parliament to eliminate the VAT exemption for parcels valued under €150. This VAT exemption is frequently exploited by unscrupulous market players, who artificially split large commercial consignments into smaller shipments to avoid VAT, and then sell these goods tax-free via online platforms or informal markets. As a result, compliant Ukrainian businesses that pay all taxes are forced to compete with goods entering the market without any taxation. Furthermore, official importers bear additional costs related to warranty servicing and promotion of such products. According to analytical centres, the volume of international duty-free postal and express shipments has been growing by around 50% annually, reaching UAH 93 billion in 2025. More than 56% of international shipments in 2025 were not taxed — amounting to UAH 92.9 billion worth of goods outside fiscal control. Direct budget losses are estimated at no less than UAH 18.6 billion in just one year, while cumulative losses since the start of the full-scale war may have exceeded UAH 43 billion. Given the current growth trend of untaxed shipments, the state budget may lose up to UAH 27 billion in 2026. The Association insists on the official publication of the full updated version of the draft law, including provisions on abolishing the VAT exemption for international parcels, as well as on its prompt discussion and adoption.

The issue of cancelling the VAT exemption for international postal shipments is not merely a tax matter — it concerns economic fairness, the survival of Ukrainian businesses, and defence funding. It is also about fulfilling Ukraine’s commitments to align its tax and customs legislation with EU rules.

The EU abolished similar exemptions back in 2021, recognising them as a source of fiscal losses and market distortions. Ukraine cannot declare a course towards European integration while maintaining provisions that directly contradict the European model. Moreover, from 1 July 2026, the EU will abolish even the customs duty exemption for such goods.

The Association has repeatedly supported the Government in this initiative and has called on the Members of the Ukrainian Parliament to eliminate the VAT exemption for parcels valued under €150.

This VAT exemption is frequently exploited by unscrupulous market players, who artificially split large commercial consignments into smaller shipments to avoid VAT, and then sell these goods tax-free via online platforms or informal markets.

As a result, compliant Ukrainian businesses that pay all taxes are forced to compete with goods entering the market without any taxation. Furthermore, official importers bear additional costs related to warranty servicing and promotion of such products.

According to analytical centres, the volume of international duty-free postal and express shipments has been growing by around 50% annually, reaching UAH 93 billion in 2025.

More than 56% of international shipments in 2025 were not taxed — amounting to UAH 92.9 billion worth of goods outside fiscal control. Direct budget losses are estimated at no less than UAH 18.6 billion in just one year, while cumulative losses since the start of the full-scale war may have exceeded UAH 43 billion.

Given the current growth trend of untaxed shipments, the state budget may lose up to UAH 27 billion in 2026.

The Association insists on the official publication of the full updated version of the draft law, including provisions on abolishing the VAT exemption for international parcels, as well as on its prompt discussion and adoption.