AmCham Calls on Parliament to Adopt Taxation Bills for Digital Platforms and Shipments up to EUR150

The American Chamber of Commerce (AmCham) in Ukraine has called on the Verkhovna Rada to adopt two crucial bills that have a considerable influence on the taxation of digital platforms and international postal shipments valued at up to EUR150. The proposed bills, numbered 15111 and 15112, aim to establish an automatic exchange of information regarding income generated on digital platforms and introduce a value-added tax (VAT) on international postal packages. These measures are expected to create a level playing field in the market.

In its official statement, the Chamber emphasized that these initiatives are necessary for aligning Ukrainian legislation with European Union norms and fulfilling international obligations. AmCham believes that regulating the taxation of income earned through digital platforms, as well as eliminating exemptions for postal shipments, would demonstrate Ukraine's readiness to implement reforms even amid martial law.

Additionally, the business association welcomed positive developments in the fight against illegal production of excise goods, particularly the recent discovery of a tobacco manufacturing operation in the Chernivtsi region. AmCham expressed hope for further large-scale revelations and the dismantling of schemes that allow large businesses to evade tax burdens through artificial fragmentation into groups of individual entrepreneurs.

At the same time, AmCham warned against initiatives that could undermine tax certainty in the country. Specifically, the concerns revolve around potential retrospective changes in legislation or the reintroduction of increased profit tax for banks. "The Chamber emphasizes that the effectiveness of these measures will depend on proper law enforcement. We urge Parliament, the government, and law enforcement agencies in Ukraine to intensify efforts in combating the shadow economy to ensure necessary budget revenues and fair competition," the AmCham statement read.

Member of Parliament Yaroslav Zheleznyak, summarizing the results of a working group meeting held on April 2, reported that the chances of adopting the government's versions of these bills are currently low. According to him, deputies are proposing an alternative version that excludes the provision on taxing goods on digital platforms, commonly referred to as the "OLX tax," as well as abandoning the introduction of special accounts and access to banking secrecy.

Zheleznyak also noted that, despite these bills being important structural beacons for a new program with the International Monetary Fund (IMF), the fund does not currently require such stringent norms, and calculations regarding expected revenues from taxing goods in shipments are absent.

MP Nina Yuzhanina also criticized the proposed mechanisms. She pointed out that bill No. 15111 entails a complicated registration system for citizens, while bill No. 15112 could lead to a collapse in the operations of postal operators, who handle over 75 million packages annually. Yuzhanina also emphasized that the question of exemptions for goods transported in shipments and used for drones, as well as electronic warfare means, remains open.

Furthermore, according to Yuzhanina, regarding bill No. 15110, which pertains to the extension of the military tax at a rate of 5%, the allocation of funds should occur exclusively to a special fund for the financing needs of the Armed Forces of Ukraine, rather than to the general fund of the state budget.

Zheleznyak reported that all three tax bills—taxation of platforms, elimination of exemptions on shipments, and military tax—will be submitted for consideration by the Verkhovna Rada's Committee on Tax Policy on Monday, April 6. A vote in the chamber to include these bills in the agenda is scheduled for the second week of April.