The association said canceling the VAT exemption for international shipments is not only a tax issue: “it concerns economic fairness, the survival of Ukrainian businesses, and defense funding,” it said.
“The EU abolished similar exemptions back in 2021, recognizing them as a source of fiscal losses and market distortions,” the message said.
“Ukraine cannot declare a course towards European integration while maintaining provisions that directly contradict the European model. Moreover, from 1 July 2026, the EU will abolish even the customs duty exemption for such goods.”
EBA has repeatedly supported the Cabinet on the initiative and urged parliament to repeal the exemption for parcels valued up to EUR150.
The group said the VAT break is frequently exploited by unscrupulous actors who split industrial shipments into many small consignments to avoid VAT, then sell the goods tax-free online or for cash at “informal markets.”
“As a result, compliant Ukrainian businesses that pay all taxes are forced to compete with goods entering the market without any taxation,” the statement continues.
“Furthermore, official importers bear additional costs
related to warranty servicing and promotion of such products.”