Analysis of the draft law:
Analysis of the Draft Law of Ukraine on Customs Formalities for International Postal and Express Shipments
This draft law is aimed at a comprehensive reform of the taxation and customs clearance system for goods imported into Ukraine within the framework of remote sales (e.g., via marketplaces). The document introduces the institution of “electronic interface enterprises” and shifts the burden of declaration and VAT payment to such platforms. The main goal is to optimize customs processes, ensure equal taxation conditions for domestic and foreign sellers, and harmonize with European Union rules.
Structure and Main Changes
The draft introduces significant changes to the Customs Code of Ukraine, particularly regarding terminology, declaration procedures, accrual of payments, and the provision of customs guarantees. The main structural blocks of the changes include:
- Terminological framework: Introduction of the concepts of “remote sale of goods,” “electronic interface enterprise,” and “intermediary.”
- New declaration procedure: Implementation of electronic registers as the primary tool for customs clearance for postal shipments.
- Taxation: Introduction of a special VAT payment mechanism for remote sales operations, including changing the rules for applying exchange rates.
- Guarantee institution: Introduction of an “optional guarantee” to secure the payment of tax liabilities.
Important Provisions for Stakeholders
Based on the analysis, the most critical aspects for different groups are as follows:
- For business and operators: Postal operators and express carriers are transitioning to a simplified declaration model using datasets. At the same time, platforms (electronic interfaces) are directly tasked with the obligation to pay VAT, which requires them to register with customs authorities and provide access to account records.
- For legislators and experts: The draft changes the algorithm for the emergence of the obligation to pay customs duties — it is now linked not only to the actual import but also to the moment of receiving funds for the goods. A mandatory reconciliation of payments between customs and treasury authorities is also introduced.
- For citizens: The value limit for goods exempt from import duty (up to 150 euros) is maintained; however, the payment of VAT and customs duty is clearly delineated. The procedure for returning goods to the sender now has clear legal grounding as grounds for terminating the obligation to pay duties.
- Transition period: The draft provides a special provision on exemption from administrative liability for VAT-related violations during the first year after the system’s launch, which serves as an important signal to businesses regarding the adaptation period for the new requirements.
Please note: the stated provisions reflect changes exclusively in the text of the draft law and do not contain evaluative judgments regarding the expediency or socio-economic consequences of implementing these norms.
Analysis of the explanatory note:
Greetings. As a lawyer with many years of experience, I have analyzed the document you provided. Below is a concise and professional analysis of the essence of the draft law.
1. Essence of the draft law
The draft law is aimed at adapting Ukrainian customs legislation to European Union norms regarding the taxation of goods imported via international postal and express shipments. The key change is the introduction of a VAT payment mechanism for remote sales of goods (online orders) in order to regulate the taxation of shipments whose value does not exceed 150 euros.
2. Reasons and necessity for adoption
The author of the explanatory note highlights three main drivers for the necessity of these changes:
- European integration and international obligations: The need to harmonize Ukrainian law with EU Directives (specifically regarding VAT on remote sales) and fulfill the requirements of Memorandums with the EU and the IMF.
- Synchronization of legislation: The need to align the Customs Code with the corresponding changes to the Tax Code of Ukraine.
- Fiscal efficiency: The state intends to modernize the tax administration mechanism to obtain additional budget revenues, estimated at approximately 10 billion UAH per year.
3. Main consequences for key stakeholders
- For the state and budget: The main result will be an increase in tax revenues due to automation and bringing the taxation of small parcels out of the “shadows.”
- For business (marketplaces and carriers): Postal operators, express carriers, and, importantly, electronic interface enterprises (platforms) and their intermediaries are charged with the direct obligation to pay VAT. A clear accounting and requirements for declaring goods are introduced for them.
- For citizens: The customs clearance process becomes more formalized. At the same time, to facilitate adaptation to the new rules, the draft provides for a transition period during which businesses will be exempt from administrative liability for errors in VAT payments, provided that the tax itself is paid in full.
- For legislators and experts: The document demonstrates Ukraine’s readiness for full integration into the EU customs space by introducing European remote trade rules, despite the complexity of administering such cross-border operations.
I hope this analysis will assist you in your work. If there are additional questions regarding the legal aspects, please feel free to reach out.
Analysis of other documents:
Greetings. As a lawyer with 15 years of experience, I have analyzed the submitted package of documents regarding Draft Law No. 15460. Below is a concise analysis for your work.
1. Position of the document authors
The Cabinet of Ministers of Ukraine (initiator) insists on the necessity of adopting the law to harmonize customs legislation with EU norms and ensure the payment of VAT in e-commerce. The Verkhovna Rada Committee on Finance, Tax and Customs Policy supports the draft law, pointing to its importance for fulfilling international obligations to the IMF and the EU. The Committee on EU Integration officially recognized that the provisions of the draft do not contradict European Union law, although it did point out certain terminological and procedural discrepancies with the norms of EU law.
2. Main provisions of the draft law
For business, experts, and citizens, this document is the foundation for a new regime of working with international parcels:
- Introduction of “remote sale”: The law creates a mechanism under which the responsibility for VAT payment is placed on electronic interface enterprises (platforms like Amazon, AliExpress, etc.) or their intermediaries. This simplifies the procedure for the recipient but imposes new obligations on sellers.
- Currency regulation: A clear mechanism for determining the exchange rate for VAT accrual is introduced, which will reduce discrepancies between customs and business when declaring shipments.
- Declaration through registers: Postal operators and express carriers will have the right to submit registers instead of full customs declarations. This will significantly speed up customs clearance (so-called “customs formalities”), although the automated risk management system still remains the key filter.
- Financial guarantee: Mandatory security (individual guarantee) at the level of 100,000 euros is introduced for enterprises operating under the remote sales rules. This is a financial control measure intended to guarantee the payment of taxes to the state.
- Exemption from liability: A “transition period” is provided for business — for one year after the introduction of the rules, liability for late VAT payment for small shipments (up to 150 euros) will be mitigated, provided the tax is paid in full.
- Technical nuance: The Main Scientific and Expert Department (GNEU) noted that part of the norms regarding VAT administration is not the subject of regulation by the Customs Code; however, given the decision of the profile committee, the draft law will likely be voted upon in the proposed form.
In summary: this is a systemic reform that brings the Ukrainian customs field closer to European “e-commerce” standards, shifting part of the tax burden and bureaucracy from the shoulders of the consumer and the customs officer to large electronic platforms.
