The Verkhovna Rada increased the cost of parcels from abroad without taxation

Each of us ordered something for ourselves from Europe, the USA, Canada, since prices there are lower than in Ukraine, many build a whole business on this, selling equipment. We help our clients set up all processes and reach the first profit.

Now it will become even easier because the Rada has increased the cost of parcels from abroad without taxation.

On January 25, 2022, the Verkhovna Rada, in the second reading and as a whole, adopted bills returning the old limit for non-taxable postal receipts from abroad: from 100 to 150 euros. This means that now Ukrainians will be able to order and receive goods worth up to 150 euros by mail without paying taxes and duties.

When a user, for example, buys a product in a foreign online store and receives it in Ukraine, such a package should be evaluated. If its assessment is below a certain limit established by law, it does not need to pay import duties and VAT. And if its price is higher than the limit, then from the excess, the recipient must pay 20% VAT and 10% import duty. For individuals, such a price is determined on the basis of the invoice value indicated in the check or invoice for the goods. If the parcel costs from 100 to 150 euros, then you will have to pay 20% VAT on the excess, and if more than 150 euros, you will also have to pay import duty.

This limit has been the subject of discussions and even conflicts for a long time: for example, in 2018, at the initiative of one of the associations, they wanted to reduce such a limit to 22 euros, but due to the violent reaction of users, the idea, which was called “ghetto for buyers”, was abandoned. Then there was an initiative to limit the number of duty-free parcels per person to three per month, but it was not possible to find a way to control the number of parcels, this idea was also abandoned.

Since 2019, Ukraine has a new limit on duty-free parcels from abroad: 100 euros instead of 150, which had been in effect for a long time by that time. This rule was introduced to fight illegal imports.

On January 25, 2022, the Rada adopted bills returning the old limit of 150 euros: this is good news for those who buy a lot in foreign online stores like AliExpress, Amazon or eBay. After all, now you can order more expensive goods without paying taxes on them.

According to the authors of the bills, the idea to reduce the limit in order to fight shadow imports did not justify itself: “The experience of other countries confirms that in the event of a decrease in the specified limit, the costs of state bodies for organizing tax collection exceed the tax revenues received by the budget. For example, the Canadian federal government spends more than $160 million to process packages with a value ranging from $20 to $80 to collect only $40 million in fees.”

At the same time, the reduction of the duty-free limit to 100 euros led to a strong reduction in import shipments to Ukraine, and vice versa, to the activation of “gray” schemes for the import of goods. That is why the authors of the bills proposed to the parliament to return the old limit.

After the bills are signed by the president and published, there will be no taxes to pay on receiving a parcel worth up to 150 euros. These draft laws will enter into force on the day following the day of publication

The Immigration Law Office was established in 2007. It provides assistance to foreign clients in Kiev (KV), Odessa (OD), Dnipro (DP), Lviv (LV), Kharkiv (KH), Lugansk (LG) and Donetsk (DN) regions, Crimea (KR) and others regions of Ukraine.

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