Changes in VAT Taxation of Distance Sales of Goods in International Consignments

On 15 October, the Verkhovna Rada of Ukraine adopted at second reading Draft Law No. 16051-1 (the “Draft Law No. 16051-1”) amending the Tax Code of Ukraine regarding the VAT treatment of distance sales of goods moved (sent) across the customs border of Ukraine in international postal and express consignments, as well as Draft Law No. 15460, which establishes the customs formalities for goods, including those purchased under distance sales rules (the “Draft Law No. 15460”). 

The stated purpose of the Draft Laws is to harmonise Ukrainian tax legislation with Council Directive 2006/112/EC. The Draft Laws result from the consideration of several previously submitted draft laws on changes to the VAT and rules for distance sales in Ukraine, including partial implementation of Council Directive 2006/79/EC. 

We previously wrote about the first versions of the draft laws on the taxation of parcels — Draft Laws No. 12429 and No. 12430 of January 2025.

Below, we comment on the key tax and customs changes concerning distance sales of goods based on the texts of Draft Laws No. 16051-1 and No. 15460 in the version signed by the Chairman of the Verkhovna Rada of Ukraine on 20 October 2026.

• Draft Law No. 16051-1 introduces a separate VAT regime for distance sales of goods imported into the customs territory of Ukraine (the “distance sales”), which will operate outside the general VAT regime applicable to other transactions. Both Ukrainian and foreign platforms will fall within its scope.
• The VAT mechanism for distance sales is effectively mandatory and does not allow the recipient (importer) to declare and pay VAT without the involvement of the platform or its representative.
• The separate distance sales regime will apply to goods in respect of which all of the following conditions are met:
  • the aggregate value of the consignment does not exceed EUR 150;
  • the goods are imported into Ukraine; and
  • the purchaser is an individual.
• Online platforms (“electronic interface operators”) are designated as the VAT taxpayers for such transactions. Foreign platforms must appoint an authorised resident representative (intermediary), who will be responsible for fulfilling all obligations of the platform as a VAT taxpayer in the platform’s name and on its behalf.
• The VAT liability for distance sales arises on the date the electronic interface operator receives payment for the goods sold, irrespective of the date of actual supply.
• The importation of goods (other than excisable goods) within the distance sales regime is exempt from import VAT if the tax has already been included in the price and paid at the time of sale.
• The VAT base is the aggregate invoice value of the goods, as determined under the Customs Code of Ukraine. Distance sales are subject to VAT at a uniform rate of 20%, irrespective of the type of goods, except for certain specifically VAT-exempt goods.
• Distance sales of a specified list of goods intended for security and defence purposes, whose importation is already exempt from VAT during martial law, will also be exempt from VAT.
• The person responsible for the assessment and payment of VAT is not required to issue VAT invoices or file VAT returns in respect of distance sales. Instead, that person must submit a report on the assessment and payment of customs charges, irrespective of whether any distance sales were carried out during the relevant period. The procedure for preparing, submitting and amending this report is to be approved by the Cabinet of Ministers of Ukraine.
• The person responsible for the assessment and payment of VAT in respect of distance sales (i.e., the intermediary or the platform) is not entitled to claim input VAT credit specifically in relation to such distance sales.
• VAT paid on such transactions will be credited to the special fund of the State Budget of Ukraine and used to cover the needs of the Armed Forces of Ukraine.
• The VAT refund mechanism for distance sales is to be regulated by a resolution of the Cabinet of Ministers of Ukraine.
• The Draft Laws introduce a multi-stage foreign currency conversion mechanism for determining (i) the VAT taxable amount upon receipt of payment and (ii) the customs value upon actual importation. Different exchange rates at different stages may create inconsistencies in the application of the separate VAT regime to distance sales. If the value of the goods is below EUR 150 when payment is received but exceeds EUR 150 at importation due to exchange-rate fluctuations, the same transaction may be taxed twice. No overpayment refund mechanism is currently envisaged.
• A separate exchange rate is envisaged for determining the final amount of VAT payable by the intermediary of a foreign platform, namely the rate applicable on the date the report is filed.

• Draft Law No. 15460 establishes the customs mechanism for applying the separate taxation regime to distance sales.
• Goods purchased under distance sales rules with a value not exceeding EUR 150 will be declared by a postal operator or express carrier through supplementary registers of international consignments. Such registers will replace customs declarations.
• Before the goods are imported, the platform (and, for a non-resident platform, its intermediary) must provide the customs authorities with the unique commercial transaction control number, the invoice value of the goods and the date payment was received, or, if payment has not been received by the dispatch date, the date of supply of the goods.
• Resident platforms must register with the customs authority as VAT payers for distance sales, while non-resident platforms must appoint at least one intermediary. The non-resident platform and each intermediary appointed by it will be separately registered and assigned individual registration codes.
• A resident platform or an intermediary of a non-resident platform must provide an individual VAT payment guarantee. The guarantee is set at the equivalent of EUR 100,000.
• Platforms must maintain detailed records of distance sales and provide customs authorities with electronic access to those records upon request. The records must be retained for at least 1,095 calendar days after the end of the year in which the transaction took place.
• VAT will be paid on the basis of the report on the assessment and payment of customs charges within 10 calendar days after the filing deadline. A resident platform will pay tax in UAH, while a non-resident platform may pay in EUR or USD into a special foreign-currency account. If the report is not filed or VAT payment is not confirmed, the customs authority may issue a demand to the person liable for customs payments and, if that obligation is not fulfilled, to the guarantor.
• The electronic interface operator is the person liable for VAT payment.
• The customs payment obligation arises on the date the seller (or another person acting for the seller) receives payment for the goods sold. The obligation terminates, among other cases, where goods imported into Ukraine under distance sales rules are exported from Ukraine because they are returned to the sender.
• The new procedure provides for automated customs control. Involvement of a customs officer will not be mandatory for consignments valued at up to EUR 150 unless required by the automated customs clearance system or following application of the risk management system. The automated risk management system is also expected to reduce the forms and scope of customs control.

• The importation into Ukraine of goods (other than excisable goods) in unaccompanied baggage with an aggregate value of up to EUR 150 is exempt from VAT.
• Accordingly, consignments imported by individuals with an aggregate value of up to EUR 150 that do not fall under the distance sales regime may remain VAT exempt.

• The provisions of the Draft Laws will enter into force on the day following their publication, except for the provisions introducing the separate taxation regime and other changes concerning exemptions. Those provisions will enter into force 45 days after the official publication of a Cabinet of Ministers of Ukraine decision confirming readiness to implement the distance sales rules, but not earlier than 1 July 2027.

• On 23 of October 2026, the Draft Laws were officially published (as Laws of Ukraine 5025-IX та 5026-IX).

• The Draft Laws propose a new model for the taxation and customs clearance of e-commerce, shifting the focus of VAT control from importation into Ukraine to the time of online sale.
• The Draft Laws contain a number of inconsistencies and do not fully align conceptually with the logic of the relevant EU rules on VAT taxation of transactions carried out by non-residents, including distance sales.
• Consignments sent between individuals with a value of up to EUR 150 may remain VAT exempt.
• The actual launch of the new regime will depend on the readiness of the customs authorities’ information systems, adoption of the necessary secondary legislation and a separate decision of the Cabinet of Ministers of Ukraine confirming readiness to introduce the new rules.

• PwC Ukraine team is ready to assist you with, among other things:
  • analysing the impact of the new rules on your business model;
  • assessing the readiness of your processes for the new requirements;
  • developing amendments to internal procedures; and
  • considering changes to your operating model.
• We would be pleased to discuss the relevant changes in more detail in the context of your business.