Shoppers using Temu, AliExpress, and other foreign marketplaces are unlikely to feel the impact of a 20% VAT on their orders until 2028, even though the law allows for the new rules to take effect as early as July 2027. Customs authorities, in collaboration with these platforms, will need to establish a registration and data-exchange system capable of handling millions of shipments—a task significantly more complex than the implementation of the so-called “Google tax” in the past. Nevertheless, within a year to 18 months, major marketplaces are expected to register, after which the tax will be applied automatically at the time of payment. This assessment was provided to *Slovo i Dilo* by Viacheslav Cherkashyn—a financial and tax expert, analyst on tax policy and taxation issues, and Director of the NGO “Institute for Social and Economic Transformation.”
On October 22, President Volodymyr Zelenskyy signed legislation to abolish the preferential customs treatment for parcels valued up to €150 ordered from foreign marketplaces. Once the laws come into force, a 20% VAT will apply to all orders from abroad, regardless of their value. Previously, parcels valued up to €150 were exempt from VAT; under the new system, the platforms themselves will be responsible for calculating and remitting the tax. Non-commercial shipments between private individuals valued at up to €45 will remain exempt from VAT. The new rules will take effect following a specific decision by the Cabinet of Ministers, but no earlier than July 1, 2027. According to the expert, some changes in the cost of international purchases are already taking place, partly due to decisions made by the European Union. At the same time, the new Ukrainian regulations regarding VAT on goods from foreign marketplaces will be on a different scale and will require a dedicated infrastructure. He explained that European countries have already eliminated the exemption for small parcels and introduced additional fees related to their processing. Consequently, shoppers may experience an increase in costs, depending on the country of origin and the shipping terms. However, this is not the same as the VAT mechanism that Ukraine plans to implement in the future.
When will VAT on international parcels take effect?
According to Cherkashyn, Ukrainian shoppers should not expect the new tax regime to be fully implemented in the near future. The system is complex, as it must facilitate the registration of platforms, data exchange, the processing of a large volume of shipments, and tax payments.
“The law signed by the President will come into effect in 2028—no sooner. The system is extremely complex,” the expert emphasized.
By way of comparison, he pointed to the experience of the European Union, where it took several years to adapt the system to the new rules following the removal of the exemption for small parcels. Therefore, Cherkashyn believes that a rapid rollout should not be expected in this case either.
“In the EU, it took about three years to adapt the border system to handle these parcels. It is a lengthy process that cannot simply be done overnight.” “Even if our customs authorities work closely with all these platforms to develop a solution, it still won’t happen very quickly,” said Cherkashyn.
He compares this situation to the implementation of electronic excise stamps, which was repeatedly postponed due to the complexity of the system.
“The system is complex because it requires administration; everyone must be registered and prepared, and the system has to process data. It is no easy task,” Cherkashyn explained.
Therefore, it is highly likely that shoppers using international marketplaces will not feel the full impact of the VAT assessment until the end of 2027. However, this is an expert’s forecast rather than a guaranteed launch date; the actual timeline will depend on infrastructure readiness and the final procedures for implementing the law.
How much might prices increase?
Once the system is launched, the extent of the additional costs will depend on exactly how the VAT is calculated and paid. Cherkashyn explained that if a marketplace registers with the Ukrainian customs system, the tax could be charged based on the purchase price.
“For instance, if you buy goods on AliExpress and the marketplace registers with Ukrainian customs, they will charge 20% on top of the declared purchase amount. That is the extent of the price increase,” the expert stated.
Consequently, if the tax is applied to the full declared value of the goods, a purchase costing 1,000 hryvnias would incur an additional 200 hryvnias in VAT—not accounting for any other potential charges. The final amount will depend on tax calculation rules and the specific terms of the purchase. According to the Ministry of Finance’s plan, explained Cherkashyn, the process should be as automated as possible: the buyer places an order, and the platform calculates the applicable tax at the time of payment.
“Ideally—as the Ministry of Finance envisions it—that is exactly how it will work. Platforms will be required to either appoint a representative in Ukraine or otherwise ensure compliance with the requirements,” he noted.
The expert pointed out that Ukraine already has experience taxing digital services provided by foreign companies—the so-called “Google tax.” However, this approach cannot be directly applied to international parcels.
“It will be much more complex here. We are talking about approximately 120 million parcels per year, a volume that is growing by 30–40%. You cannot simply draw a parallel to the ‘Google tax’—it will be a very difficult challenge,” Cherkashyn explained.
According to his forecast, major international marketplaces will eventually adapt to the new requirements, just as they did in the EU. However, the pace of this transition will depend on the readiness of both the platforms themselves and Ukraine’s administrative system. While the new rules could make purchases from foreign marketplaces more expensive, it is premature to expect an automatic 20% surcharge on every order in the immediate future. First, Ukraine must establish a system capable of handling millions of international shipments and managing tax administration.
“I believe that within a year to a year and a half, all major platforms will register, and the system will function automatically. But exactly how quickly this will happen remains a very big question,” the expert concluded.
