Parliamentary Committee Removes PEP Status Limitation from International Parcel Tax Bill

On Tuesday morning, the parliamentary committee on finance, tax, and customs policy made a significant decision regarding the bill (No. 15112-1) aimed at extending taxation to international parcels valued up to EUR 150. The committee opted to remove a previously proposed provision that would have limited the status of public figures (PEP) to three years after leaving office. This decision was made in an effort to increase support for the bill among lawmakers.

The first deputy head of the committee, Yaroslav Zheleznyak, representing the 'Golos' faction, commented on the situation, noting that during discussions with the ruling faction 'Servant of the People' and Vice Prime Minister for European and Euro-Atlantic Integration Taras Kachka, it became clear that including such a provision would violate Ukraine's commitments. 'It was obvious,' he wrote in his message.

Instead of the PEP status limitation, the committee decided to introduce a new provision that halts penalties on banks for PEP-related violations until Ukraine achieves membership in the European Union. 'This means that banks will not fear violating PEP regulations and should become more adequate in their approach to such individuals,' Zheleznyak explained. He also added that he did not vote for the initial version of the bill but now supports the new version not because of the PEP issue but due to the essence of the parcel law itself.

Bill No. 15112-1 proposes the introduction of a new taxation regime for e-commerce, specifically the cancellation of VAT exemptions for international postal shipments valued up to EUR 150. According to this bill, the lifetime status for officials of international entities will be abolished, and it will be limited to three years after their dismissal.

The bill also implements a new taxation model for parcels valued up to EUR 150 that were purchased through electronic platforms. The responsibility for calculating and paying VAT will be placed on marketplaces or their intermediaries if the company is a non-resident. Marketplaces will be exempt from the obligation to issue tax invoices and submit declarations for such operations but are required to maintain detailed records. In cases where the seller is a non-resident, the tax amount will be determined in euros or US dollars, and the date of obligation will be considered the day the funds are received from the buyer.

Furthermore, for non-commercial shipments between individuals, the bill provides for VAT exemption for parcels valued up to EUR 45, provided that they are free of charge and intended solely for personal or family use.

Bill No. 15112-1 is part of a structural benchmark of the new cooperation program between Ukraine and the International Monetary Fund (IMF), underscoring its importance for the country's economic stability and the fulfillment of international commitments.