The business community, represented by the 10 largest business federations and specialized business associations in Ukraine that have signed this statement, calls on the Members of the Ukrainian Parliament to immediately adopt Bill No. 15112-1 “On Amendments to the Tax Code of Ukraine Regarding the Taxation of E-commerce Transactions with Value-Added Tax” (hereinafter referred to as the bill).

The urgent adoption of the amendments proposed by the bill is not merely a technical or tax issue—it is a matter of ensuring a level playing field for business, economic justice, the potential for further development of Ukrainian business, and the financing of Ukraine’s defense through tax revenues to the State Budget.

We call on the Members of the Verkhovna Rada of Ukraine:

• To adopt Draft Law No. 15112-1 in principle and in its entirety as soon as possible.
• To end the practice of effectively subsidizing foreign imports at the expense of Ukrainian businesses.
• To ensure a level playing field for all market participants—regardless of country of origin.

What is the problem?

Currently, Ukraine has a regulation that exempts goods in international postal packages valued at up to 150 euros from VAT. This exemption is, in fact, a mechanism that systematically undermines the legal market for both domestic production and imports, while simultaneously giving preferential treatment to foreign online retail platforms.

What happens because of this exemption:

• Organizers of “gray schemes” massively split shipments into small parcels to avoid VAT, receiving thousands of tax-free foreign goods daily under the names of various individuals, and selling these goods online without paying taxes.
• Legitimate Ukrainian businesses that pay all taxes are forced to compete with goods that arrive completely tax-free.
• Foreign sellers bear no responsibility for quality, do not provide warranty service, and do not comply with technical regulations, yet they have a price advantage due to not paying VAT.
• The volume of international tax-free postal and express shipments is growing by 50% annually, and in 2025, the volume reached 93 billion UAH.

How much is this “costing” Ukraine?

The numbers speak for themselves:

• Over 56% of international shipments in 2025 were untaxed—that’s 92.9 billion UAH worth of goods outside the fiscal system.
• Direct budget losses amount to at least 18.6 billion UAH in just one year.
• Total losses since the start of the full-scale war could exceed 43 billion UAH.
• Given the current growth trend in untaxed postal and express shipments, the state budget will lose 27 billion UAH in 2026.

What does Bill No. 15112-1 propose?

The bill proposes a simple and fair solution—the same one the EU introduced back in 2021:

• VAT on imported parcels is charged starting at 0 euros—with no preferential thresholds for commercial imports.
• Non-commercial gifts between private individuals valued at up to 45 euros remain VAT-exempt—protection for ordinary shoppers is preserved.
• VAT is automatically included in the price at the time of purchase—no additional procedures for the buyer, no lines at customs.
• The online platform operator (Temu, AliExpress, etc.) is responsible for paying VAT—they will transfer the funds to the State Budget of Ukraine.

The bill provides for a VAT exemption on the import into Ukraine’s customs territory and the supply of unmanned aerial vehicles, their parts, and components used in their manufacture; therefore, the bill will in no way affect UAV production.

Why is this important right now?

First, it is a requirement of European integration. The EU abolished similar exemptions in 2021, recognizing them as a source of fiscal losses and market distortions. Ukraine cannot declare a course toward the EU while simultaneously maintaining regulations that directly contradict the European model.

Second, it supports Ukrainian business. In the medium term, this means the development of Ukrainian manufacturing, reduced dependence on imports, and potential growth in the number of jobs and wages for Ukrainians.

Third, the argument about “cheapness for the consumer” is flawed. In the short term, the tax break creates the illusion of cheapness. In the medium term, it leads to the destruction of local production, increased dependence on imports, and a reduction in real competition. Ultimately, the consumer “loses out” as well.

Fourth, the introduction of new regulations minimizes “gray market schemes”—mail “smuggling” will become economically unprofitable.

Business associations are ready for further constructive dialogue and cooperation to jointly create favorable conditions for the development of a fair and transparent market in Ukraine.

Signatories:

1. The Ukrainian Business Council, Ukraine’s largest association comprising 130 leading business associations;
2. The Federation of Employers of Ukraine, the largest nationwide organization representing the interests of approximately 8,000 enterprises that generate 70% of Ukraine’s GDP and provide jobs for over 3 million people;
3. The Ukrainian Chamber of Commerce and Industry, with over 6,000 member enterprises;
4. The American Chamber of Commerce in Ukraine, an association of over 600 member companies that has been operating in Ukraine since 1992;
5. The German-Ukrainian Chamber of Industry and Commerce (AHK Ukraine), which brings together over 280 companies and organizations involved in German-Ukrainian economic relations;
6. The Association of Information Technology Enterprises of Ukraine, which brings together manufacturers, importers, distributors, and retailers in the fields of information technology, electronics, e-commerce, and related industries;
7. The Ukrainian Association of Light Industry Enterprises “Ukrlegprom,” which brings together more than 250 light industry enterprises whose production volume accounts for over 60% of Ukraine’s total light industry output;
8. The Ukrainian Toy Industry Association, which unites the efforts of member companies to develop a market for high-quality children’s toys in Ukraine;
9. The Ukrainian Retailers Association—retail market players and companies directly related to retail;
10. The Ukrainian Council of Shopping Centers—key players in the commercial real estate market: owners and developers of shopping centers, as well as companies involved in the construction and maintenance of shopping centers.