The marketplaces Temu and AliExpress may be required to automatically charge 20% value-added tax (VAT) on all orders from Ukrainian buyers directly at the time of purchase. This provision is included in the revised bills No. 15112-d and No. 12360, which regulate the taxation of imported parcels worth up to 150 euros. The relevant committee of the Verkhovna Rada has already recommended the adoption of these legislative changes.
This is reported by Finway
Two ways to pay tax for marketplaces and sellers
As explained by “Ukrposhta”, the updated bills propose two options for tax administration. The first mechanism stipulates that VAT is charged directly on the platform during the purchase process, and the collected funds are transferred to the delivery operator, who then pays them to the state budget. “Ukrposhta” is confident that large international platforms already operating in the Ukrainian market will be able to technically implement such a function for automatic VAT charging. Currently, goods from Temu are delivered to Ukrainian buyers by operators such as “Ukrposhta”, “Nova Poshta”, and Meest Express.
“Large international platforms that have already invested in the Ukrainian market will be able to technically refine their systems for automatic VAT charging.”
For smaller sellers who do not integrate with the Ukrainian tax system, another mechanism is proposed. In this case, the seller must provide the postal operator with information about the shipment, after which the operator contacts the buyer before the parcel arrives and organizes the tax payment process.
VAT administration and growth of international shipments
To ensure effective VAT administration, a unique registration code (UCR) for each parcel will be used, allowing for the handling of consolidated shipments. In recent years, the volume of international postal shipments has significantly increased: while about 4 million kg of parcels were transported in 2021, last year this figure reached 12 million kg. The State Customs Service has reported its technical readiness to process all international parcels in automatic mode starting from the beginning of next year, provided that parliament approves the relevant bills.
The business community supports the swift adoption of the new rules. Representatives of the business sector emphasize that the current system creates unequal conditions for Ukrainian producers and encourages retailers to move their e-commerce warehouses outside the country.