Ukraine must approve a law introducing value-added tax (VAT) on low-cost parcels imported from abroad if it is to preserve the momentum of its $8.1 billion programme with the International Monetary Fund, a source close to discussions said. The IMF agreement, which was approved in February, is scheduled for a review in June that will assess whether Kyiv is meeting its fiscal and governance commitments.
The source said parcels have emerged as a central sticking point in negotiations. "Parcels have now become one of the key issues," the person added. "Without adopting this law, there may be no review, with all the negative consequences that would entail." Officials say that if the IMF programme goes off track, Ukraine will be unable to receive disbursements from the European Commission, according to the same source.
Under current Ukrainian rules, goods sent in parcels with a declared value below 150 euros are not subject to VAT. The finance ministry has estimated that extending VAT to these consignments would yield roughly 10 billion hryvnias a year, a sum the ministry translated to about $227.53 million annually. The ministry has also stated the measure is not intended to impede the sending or receipt of parcels by Ukrainian citizens.
Details in the draft bill specify that non-commercial parcels with a value under 45 euros would remain exempt. The ministry further indicated that, even if approved, the VAT change would not be implemented before 2027.
Despite those concessions, the draft law submitted to parliament has not been debated because of insufficient support among lawmakers. Parliament has recently resisted passing several measures regarded as critical to securing international funding, including a proposal to apply VAT to self-employed individuals—a benchmark the IMF included in its programme conditions. Many legislators have said they are unwilling to back that unpopular step, prompting the government to reopen talks with IMF officials.
After meetings with IMF representatives in Washington in mid-April, Prime Minister Yulia Svyrydenko said there had been an understanding that moving forward with the parcel tax at this time was "not constructive," and that Ukraine would try to identify alternatives. The source involved in the ongoing discussions said the issue is difficult to adopt in 2026 and may be postponed to a later date, while talks continue.
Kyiv relies heavily on external assistance to meet its budgetary requirements and finance its defence effort. Most of the multi-year support packages demand that Ukraine carry out governance reforms and alter aspects of its fiscal code. The current IMF programme, seen by allies as a signal that Kyiv is pursuing necessary reforms, underpins partner decisions to release funding tied to those conditionalities.
Currency conversions used in official estimates: $1 = 0.8547 euros; $1 = 43.9507 hryvnias.