Taxation Bill on Parcel Deliveries Proposes Three-Year Limit on Public Figure Status and Increased Accountability for State Bank Management

Bill No. 15112-1, concerning the taxation of e-commerce operations under value-added tax (VAT), introduces substantial changes to the taxation system for international postal shipments. Specifically, the document abolishes the VAT exemption for international parcels valued at less than EUR 150. Additionally, it imposes restrictions on the lifetime status of public figures (RER) for officials of international structures, limiting it to three years after leaving office.

The relevant provisions are included in the comparative table attached to Bill No. 15112-1, which has been recommended by the relevant committee for adoption in its first reading on Monday, April 6. This bill represents a significant step towards reforming the taxation system in Ukraine and aligns with the requirements of international financial organizations.

According to the document, the RER status for individuals performing public functions in international organizations, such as directors, chairpersons, their deputies, members of parliamentary assemblies, and judges of international courts, will only be retained for three years following the completion of their mandates. This innovation aims to enhance transparency and accountability among public figures.

In addition to limiting the RER status, the bill also expands the list of individuals equated with those authorized to perform state functions. This list is proposed to include the chairperson and members of the bank's board, as well as the responsible employee for conducting financial monitoring in banks where the state share exceeds 50%. Furthermore, officials and inspectors from the Public Oversight Body for Audit Activities and members of the Audit Chamber of Ukraine are also added to the list.

The bill introduces a new taxation model for parcels valued at up to EUR 150 purchased through electronic platforms. Under the new rules, the obligation to calculate and pay VAT is placed on the marketplace or its intermediary if the company is a non-resident. It is important to note that marketplaces are exempt from issuing tax invoices and submitting 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.

Moreover, the bill clarifies tax exemptions for the defense sector, excluding the term "unarmed" from VAT exemptions when importing unmanned aerial vehicles. This will allow the supply of drones of any type without tax payment during a state of war, representing a crucial step in supporting the country's defense capabilities.

For non-commercial shipments between individuals, the bill also provides VAT exemptions for parcels valued up to EUR 45, provided they are free of charge and intended solely for personal or family use. This innovation aims to support personal connections and facilitate gift exchanges among citizens.

As previously reported, Bill No. 15112-1 serves as a structural beacon for the new cooperation program with the International Monetary Fund (IMF). The main part of the document concerns the abolition of VAT exemptions for international parcels valued under EUR 150; however, the implementation of these provisions is not planned before 2027. This indicates the seriousness of the Ukrainian authorities' intentions to reform the tax system and fulfill obligations to international partners.

According to MP Yaroslav Zheleznyak, the alternative version of the bill does not restrict the provision regarding EUR 45 for the shipment of perfumes, coffee, and tea, which is an important point for consumers wishing to receive these goods without additional costs.