IMF Sets End-July Structural Benchmark for Ukraine to Remove VAT Exemption on Low-Value Postal Parcels

The International Monetary Fund has set an end-July 2026 structural benchmark requiring Ukraine to enact legislation removing the tax exemption on low-value imports via postal packages, according to the updated Memorandum of Economic and Financial Policies (MEFP) released with the staff report on the first review of the country’s Extended Fund Facility (EFF) arrangement.

The IMF Executive Board completed the first review of the 48-month, approximately $8.1 billion EFF on July 20, 2026, enabling an immediate disbursement of about $690 million and bringing total disbursements under the program to roughly $2.2 billion, as detailed in IMF Country Report No. 26/188. Program performance was assessed as broadly satisfactory, with all end-March quantitative performance criteria met, though some structural reforms faced delays.

Under the updated MEFP, Ukraine’s nearest fiscal commitment is to adopt by the end of July legislation introducing a tax on income earned from digital platforms and removing the tax exemption on low-value imports through postal shipments, the report states. This reformulates a missed earlier benchmark on a package of tax measures. The removal of the VAT exemption on low-value imported postal packages is projected to contribute 0.1 percent of GDP in revenue yields for 2027, per the staff analysis in the same IMF report.

Currently, parcels containing goods worth less than €150 are generally not subject to taxes in Ukraine. The change aims to broaden the tax base, reduce informality, and address strong demand for small-value postal packages noted in earlier external sector assessments. The Verkhovna Rada has not yet received a dedicated government bill on the parcel taxation measure, and parliament is in recess until mid-August, according to reporting by Interfax-Ukraine based on the memorandum.

The digital platforms tax law was passed by parliament in June 2026 but awaits presidential signature. Other related fiscal structural benchmarks in the updated program include submission by end-August of Tax Code amendments on transfer pricing aligned with OECD standards and interest limitation rules under EU ATAD directives, as well as raising the threshold for certain unscheduled VAT audits from UAH 100,000 to UAH 1 million.

A major related reform—the removal of the VAT exemption under the simplified tax regime for single tax payers, along with raising the VAT registration threshold—has been postponed. It is now a proposed end-April 2027 structural benchmark, effective January 1, 2028, to allow time for administrative improvements reducing compliance costs for small and medium enterprises, the IMF staff report explains. Anti-avoidance rules to prevent abuse of the simplified regime are due for submission by end-December 2026.

These steps form part of broader efforts to reduce the shadow economy, mobilize domestic revenues, and support medium-term fiscal sustainability amid ongoing war-related pressures and large financing needs. The program remains fully financed under baseline and downside scenarios with partner support, including EU facilities. Subsequent reviews are planned for autumn and December 2026.

Ukrainian coverage, including by Судово-юридична газета (sud.ua), has highlighted the parcel measure among the tax changes awaiting implementation under the updated memorandum. Earlier reporting by Reuters had noted the importance of the parcel VAT law for keeping the IMF program on track ahead of reviews.