Purchases on AliExpress, Temu, and Amazon May Become More Expensive: Customs Rules for Parcels up to 150 Euros Will Be Revised

The Cabinet of Ministers has submitted a draft law to the Verkhovna Rada that aims to change the customs clearance rules for goods entering the country via international postal and express shipments. The document, in particular, proposes to regulate the VAT taxation procedure for goods purchased under distance selling rules, define new obligations for electronic trading platforms, and establish features of customs control and declaration of shipments valued up to 150 euros.

The draft law is titled "On Amendments to the Customs Code of Ukraine Regarding the Features of Customs Formalities for Goods Moved (Sent) Across the Customs Border of Ukraine in International Postal and Express Shipments" (registration No. 15460).

The document is aimed at harmonizing Ukrainian customs legislation with European Union law.

Effectively, the proposed changes will affect orders that Ukrainians place on international online marketplaces such as AliExpress, Temu, Amazon, eBay, Shein, and others.

Specifically for such goods arriving in Ukraine via international postal or express shipments, the draft law proposes new rules for VAT administration, customs clearance, and distribution of responsibility among delivery participants.

The "Judicial and Legal Newspaper" has provided a detailed explanation of how the new taxation system will work.

What Will Change for International Postal and Express Shipments

The draft law provides for amendments to the Customs Code of Ukraine, primarily concerning VAT taxation of operations involving the import of goods into the customs territory of Ukraine, including those purchased under distance selling rules.

Among the proposed innovations are:

• defining the specifics of applying exchange rates for calculating and paying VAT on distance selling transactions;
• establishing the powers of customs officials during customs control of goods with a total invoice value up to 150 euros moved or sent across the customs border of Ukraine in international postal or express shipments, as well as defining the specifics of the responsibility of such officials in case of failure to complete customs formalities;
• defining methods and features of declaring goods moved or sent across the customs border of Ukraine in international postal and express shipments;
• determining the moment when the obligation to pay customs duties arises upon import of goods purchased under distance selling rules.

New Obligations for Electronic Platforms

A separate block of changes concerns electronic interface enterprises and their intermediaries.

The draft law proposes to:

• include electronic interface enterprises and their designated intermediaries in the category of persons responsible for paying customs duties;
• establish special conditions for ensuring and paying VAT during distance selling operations;
• define accounting requirements for electronic interface enterprises – non-residents, their intermediaries, as well as electronic interface enterprises – residents.

A Transitional Period Is Provided

The document also contains provisions on a transitional period.

During this time, officials of electronic interface enterprises, their intermediaries, postal operators, and express carriers are proposed to be exempted from administrative liability under the Customs Code of Ukraine for violations related to incomplete and/or untimely payment of VAT on goods with a total invoice value up to 150 euros moved or sent to the customs territory of Ukraine in international postal and express shipments.

Such exemption will apply provided that the value-added tax is paid in full.

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