Billions from the EU and new taxes: what lies hidden in the ratified package
Nina Yuzhanina, a Member of Parliament and member of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, provided details of the tax provisions contained in the ratified package.
On 28 May, the Verkhovna Rada considered Presidential Bill No. 0376.
The official title of the document is the draft law on the ratification of the Loan Agreement in support of Ukraine between Ukraine, the National Bank of Ukraine and the European Union, presented by the European Commission, as well as the Memorandum of Understanding between Ukraine and the EU. The bill is initiated by President Volodymyr Zelenskyy.
In simple terms, parliament has approved a package without which Ukraine will not be able to receive part of the substantial financial support from the European Union.
But an important detail is that this is not just a financial agreement. Along with it, a Memorandum has been ratified, setting out the conditions for receiving the payments.
How much money can Ukraine receive?
The overall mechanism agreed by the EU provides for a loan to support Ukraine amounting to €90 billion. According to the EU Delegation to Ukraine, these funds are intended to help cover budgetary needs and the needs of the defence industry in 2026–2027.
Under this mechanism, Ukraine is set to receive access to €45 billion, of which €8.35 billion is earmarked through macro-financial assistance, a further €8.35 billion through the Ukraine Facility, and €28.3 billion to support defence and industrial capabilities.
Separately, on 20 May, European Commissioner Valdis Dombrovskis signed a Memorandum of Understanding on macro-financial assistance. According to “European Truth”, this should enable Ukraine to receive €8.35 billion for budgetary needs in 2026.
In short, Ukraine will gain access to billions of euros, but must fulfil a number of conditions in return.
Some of these directly concern public finances and taxes. The Council’s decision may affect not only the budget but also future rules governing cross-border procurement, the operation of digital platforms, customs, the military levy and business. The policy conditions for Ukraine focus on the fiscal aspect and are structured around three pillars: revenue mobilisation, the efficiency of public spending and public finance management.
Nina Yuzhanina stated that parliament had ratified not only the Loan Agreement but also the Memorandum, which sets out Ukraine’s ‘policy conditions’ and tax obligations.
According to her, these conditions include:
abolishing the VAT exemption for international parcels;
taxation of income from digital platforms;
changes to the simplified taxation system;
measures to reform preferential regimes;
additional measures for VAT administration;
combating the ‘fragmentation’ of businesses;
alignment of tax legislation with EU directives.
This list is provided specifically at Yuzhanina’s request. Officially, the EU separately confirms that the conditions for the first tranche include steps towards taxing income earned through digital platforms, the development of sectoral strategies for public investment, and the updating of Ukraine’s Customs Code.
What might change regarding parcels
The most sensitive issue for many Ukrainians is international parcels.
According to Yuzhanina, in order to receive the first tranche, Ukraine must submit a draft law to the Rada on the abolition of tax exemptions for international parcels, with the exception of goods for security and defence purposes.
Put simply, if such changes are adopted as a separate law, some purchases from abroad may become more expensive due to taxes.
This does not yet mean that the new rules have come into effect. Ratification of the package constitutes an undertaking. To actually change the rules, separate draft laws and votes are required.
Digital platforms, sole traders and the military levy
Another area concerns income generated through digital platforms.
The EU officially states that among the conditions for the first payment are steps towards taxing income earned through digital platforms. This may apply to individuals and businesses that receive income through online services, marketplaces, service platforms or other digital platforms.
Yuzhanina also announced possible changes to the simplified taxation system and the fight against business ‘fragmentation’. For sole traders and small businesses, this could become one of the most contentious issues, but the specific rules will depend on future draft legislation.
Separately, the MP wrote that one of the conditions is the adoption of a law extending the military levy at 5% for three years.
Customs and the State Customs Service
The package of conditions also includes a customs component.
The EU officially notes that the conditions for the first tranche include the updating of Ukraine’s Customs Code.
Yuzhanina clarified that, according to her information, Ukraine must submit a new Customs Code to the Cabinet of Ministers and appoint a new permanent head of the State Customs Service.
This is important for business, as customs is one of the key points for imports, exports, international parcels, tax control and the handling of goods at the border.
Ratification of the package does not mean that all tax changes have automatically come into effect.
It means that Ukraine has agreed to a framework in which the receipt of EU funds is tied to the fulfilment of specific conditions. Next, the government and parliament must draft and adopt individual bills.
It is these forthcoming documents that will reveal exactly how the rules for international parcels, digital platforms, sole traders, customs and the military levy will change.
As reported by ThePublic, the Cabinet of Ministers has allocated 10.8 billion hryvnias to the front line and the Ukrainian defence industry.
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