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Ukraine’s parliament failed to approve amendments to draft law No. 12360 on customs regulations, which included provisions to tax international parcels from abroad.
Lawmakers did not support the proposal to abolish the duty-free threshold for parcels worth up to €150. The bill failed even to secure enough votes to be sent back for a repeat second reading.
The measure received 222 votes — four short of the 226 required for approval — meaning the bill was rejected.
According to sources familiar with negotiations between Ukraine and the IMF, the parcel taxation reform is considered a key condition for continuing external financial support. Officials reportedly warned that if the law is not passed soon, the issue could become a formal “prior action,” meaning Ukraine may not receive the next tranche of IMF funding until the legislation is adopted.
After the vote, MP Yaroslav Zhelezniak said that if the government wants to revisit the issue, it will now have to submit an entirely new draft law.
What the bill proposed
Under current rules, international parcels worth up to €150 are exempt from VAT and customs duties.
The IMF-backed proposal aimed to preserve tax exemptions only for non-commercial parcels valued below €45.
For parcels worth up to €150, the bill proposed introducing a 20% VAT. Shipments exceeding €150 would face both VAT and a 10% customs duty on the amount above the threshold.
Currently, VAT and customs duties apply only to the portion of a parcel’s value exceeding €150.
The debate over parcel taxation has become part of broader discussions about Ukraine’s tax reforms and international financial assistance. Earlier reports indicated that the European Union was also considering linking parts of future financial aid packages to the implementation of tax-related reforms.
