VAT for postage
P. Poroshenko has signed a law on increasing taxes on parcels from abroad.
From 2019, Ukrainians will need to pay VAT on postage from abroad, which value is more than one hundred euros. The relevant Law No. 9260 was signed President of Ukraine Petro Poroshenko, 10.12.18. Previously 236 deputies voted for him. The initiator of this legislation is the current Prime Minister Vladimir Groysman.
What is the law about?
The new law concerns the introduction of amendments and additions to the Tax Code of Ukraine. In particular, Article 196 need changes. Which refers to economic transactions free from taxation. Paragraph 1.17 of this article states that the limit of the total invoice value for parcels from abroad with no VAT will decrease and amount to one hundred euros. The lower limit of the cost of parcels from abroad, not subject to VAT, will not change for legal entities and individuals – entrepreneurs. It will remain at the level of 150 euros.
How do we pay for parcels now?
Residents of Ukraine have the right to receive a non-limited number of mailings from abroad and not to pay taxes on them, if each price is below 150 euros. Tightening of these conditions is necessary in order to prevent smuggling, when, under the guise of personal parcels, people receive valuable goods with low weight for sale on the Ukrainian market bypassing customs. Especially transportation of expensive mobile phones and other equipment.
New rules will not take effect immediately. The introducion will be in the second half of next year, starting July 1, 2019.
According to the adopted bill, postal operators and international express delivery services receive the status of tax agents. Their duties will include the calculation of the amount of VAT. Also the collection of obligations under it and the payment to the state.
The rate in 3 parcels
The same regulatory document abolishes the high-profile provision on 3 premises per month announced in the mass media. We will remind that from 2019, residents of Ukraine will be able to receive no more than 3 parcels from abroad within one month. However, this restriction, according to experts, violates the rights and freedoms of citizens. In addition, to implement in practice a mechanism for tracking the number of mail items per month per person is difficult. According to the Ministry of Finance, the inability of postal operators to control the number of parcels explains the abolition of this restriction.
You can get acquainted with the detailed information and the text of the law on the official site.