Important Draft Laws. Issue 36: Taxation of International Parcels, Postponement of Military Medical Commission for Those with Limited Fitness for Service, and a Step Toward an Industrial Visa-Free Regime

During this period, 45 draft laws were registered: eight by the government and 37 by MPs. Among them is a bill introducing criminal liability for employees of Territorial Recruitment Centers (TCCs) and Military Medical Commissions (MMCs) for unlawful decisions on mobilization or deferrals. Oth

er proposals include new taxes on international parcels, the introduction of market surveillance for goods sold online, and local government incentives for businesses willing to undertake social projects within the framework of public-private partnerships.

Taxes on parcels: how prices for international purchases will change

Ukraine plans to revise the taxation rules for international parcels. Bills Nos. 12429 and 12430 propose introducing a 20% VAT on all parcels (currently applied only to those worth over EUR 150) and setting new requirements for remote sales of goods. The only exception would be parcels worth up to EUR 45, sent free of charge from one individual abroad to another in Ukraine. However, even these parcels are subject to restrictions: if a parcel contains more than 50 grams of perfume, 250 milliliters of eau de toilette, 500 grams of coffee, or 100 grams of tea, a 20% VAT must be paid on the total value of the goods (based on receipts, labels, bank statements, etc.). If receipts are unavailable, customs authorities will determine the value based on minimum prices, considering market conditions and sales terms for similar goods.

The tax would be collected from foreign sellers or marketplaces (such as Amazon, AliExpress, and eBay) that sell goods remotely to Ukrainian buyers. These entities would be required to register in Ukraine as VAT payers, add VAT to product prices, and report this information to tax authorities. For instance, if you buy a laptop on AliExpress from a Chinese seller who is not registered as a VAT payer in Ukraine, the platform automatically adds 20% VAT to the purchase price. 

Online purchases on AliExpress, Amazon, or eBay will become more expensive. For example, if a smartphone costs EUR 140, the buyer in Ukraine currently pays EUR 140 plus shipping. If the law is passed, an additional 20% VAT will apply, increasing the total to EUR 168 plus shipping. 

Postal operators (Ukrposhta, Nova Poshta) and international carriers (DHL, FedEx, UPS) would have new obligations. They must keep records of all parcels, submit customs registers, and verify whether sellers are registered as VAT payers in Ukraine. If neither the seller nor the marketplace has paid VAT at the time of sale, the recipient will be responsible for covering the tax. 

New quality control rules required for the “industrial visa-free regime“

Bill No. 12426 introduces market surveillance (inspection to ensure products comply with standards and technical regulations) for online goods. Under this bill, any product can be sold in Ukraine only if a registered business is responsible for its quality. If a manufacturer is not registered in Ukraine, the responsibility falls on the importer, logistics company (such as a postal operator), or online store. Businesses must verify product compliance with standards, maintain the necessary inspection documentation, and provide it to regulatory authorities when required. 

According to the bill, market surveillance authorities—most commonly the State Service of Ukraine on Food Safety and Consumer Protection, but also other agencies such as the State Architectural and Urban Planning Inspection (for construction materials) and the State Service of Ukraine on Medicines and Drugs Control (for pharmaceuticals)—would gain expanded inspection powers. In total, around ten agencies are responsible for market surveillance. Inspections are limited to stores and warehouses, but the bill would allow authorities to conduct inspections on land plots and vehicles used for business activities. Additionally, if an inspection raises suspicions about a particular product, authorities would be allowed to examine other products from the same business, a currently prohibited practice.

If an inspection reveals a product is dangerous or does not meet standards, the platform selling it must restrict its access. If the platform fails to do so, its owners could face fines (UAH 17,000 for failing to restrict access to a page advertising a product that poses a serious risk and UAH 5,100 for failing to restrict access to information about a high-risk or non-compliant product. Additionally, market surveillance authorities would gain the right to conduct undercover purchases of goods as part of their inspections. 

The bill also requires the government to update the National Market Surveillance Strategy every four years. This strategy would outline priority sectors and products requiring special attention and define measures for ensuring product safety. 

In 2023, we conducted a detailed analysis of a similar bill on market surveillance for online trade. 

Postponement of mandatory re-examination for individuals with limited fitness for military service

As of now, all citizens classified as eligible for military service with restricted fitness for service were required to undergo a Military Medical Commission (MMC) re-examination by February 4. However, many have not yet completed the examination since the process requires receiving a summons. To provide more time while ensuring that all individuals in this category comply, MPs propose extending the deadline for undergoing the MMC until June 5, 2025, and changing the procedure. If Bill No. 12457 passes, those classified as having limited fitness for military service will be required to report for the examination voluntarily without waiting for a TCR summons. Failure to comply or delay the examination could result in a fine ranging from UAH 17,000 to 25,000.

Criminal liability for unlawful decisions by Military Medical Commissions

Bill No. 12442 introduces criminal liability for MMC doctors and military officials involved in unlawful conscription or exemption from service. If violations during a medical examination result in illegal mobilization or release from service, the responsible doctor could face 2 to 8 years in prison. The same penalty would apply to TCR heads violating the conscription process. The bill also proposes penalties for MMC members engaged in illicit enrichment. Suppose their assets exceed their legal income by more than UAH 110,000. In that case, they will face a pre-trial investigation by the National Anti-Corruption Bureau (NABU) and a prison sentence of 5 to 10 years.

Utility benefits: the government plans to monitor their use

Bill No. 12427 proposes changes to the rules for using utility payment benefits. The government suggests that these payments be used exclusively to cover utility bills. If funds are misused, the government would have the authority to review the benefit distribution process. The bill does not specify how spending will be monitored. However, it will likely follow a model similar to the national cashback system and the winter eSupport program, where special bank cards are issued, and spending is tracked via the Diia app. 

Currently, utility benefits covering 50% to 100% of costs are available to military personnel, combatants, veterans, families of fallen defenders, Chornobyl disaster liquidators, large families, cultural, education, medical, and library workers in rural areas, Nazi persecution victims, and other eligible groups. Since January 2023, all utility benefits have been provided exclusively as direct cash payments by the Pension Fund. 

The monetization of benefits was initially introduced to encourage people to conserve electricity, water, and other resources. If recipients save on utilities, they can use any unspent subsidy funds for personal needs. However, if this bill is passed, the incentive to save resources will be eliminated once again.

HOAs may be prohibited from disclosing residents’ personal data without their consent

Bill No. 12452 proposes changes to how personal data is processed within homeowners’ associations (HOAs) in multi-apartment buildings. Any information about residents obtained by an HOA during its operations will be considered confidential if passed. This means that the personal data of co-owners can no longer be disclosed without their consent. Such data can appear in financial reports, lists of debtors, meeting minutes, or even on notice boards in building entrances. For example, debt reports may include the names of debtors, and meeting minutes may contain information about owners who voted on specific decisions. If the bill is adopted, any documents containing personal data will only be accessible in a generalized form (e.g., voting results) or after removing identifying details (e.g., a list of debtor apartments without names).

Procurement of Ukrainian agricultural products bypassing the Prozorro system until 2032

Bill No. 12421 proposes temporarily allowing state procurement of agricultural products without competitive bidding (auctions) until the end of 2032, provided that the purchase amount is less than UAH 2 million and involves Ukrainian-produced grains, vegetables, fruits, other farm products, meat, or fish. In such cases, producers must submit a guarantee letter confirming that the products were grown on their land, along with documents verifying their land area, harvest volume from the previous year, and tax records. For purchases exceeding UAH 2 million, a tender process would still be required.

New public-private partnership rules: how businesses will support communities without profit

Bills Nos. 12422 and 12423 propose expanding public-private partnerships (PPP) by adding education to the list of eligible sectors. They also introduce a “social” PPP model, covering healthcare, education, tourism, culture, and sports, with additional incentives for private partners. Beyond traditional support measures–such as budget-funded contracts, government or local guarantees, and public financing–the bills propose land tax benefits of up to 50% of private investment in a project. 

However, private partners would not be allowed to lease or sublease social infrastructure facilities (such as schools or hospitals) they renovate under the project. Instead, they would be permitted to place advertisements on these facilities. According to the bill’s authors, this approach encourages businesses to invest in upgrading municipal infrastructure. 

Change in procedures for populating the Land Cadastre

Bill No. 12453 expands the list of individuals authorized to register land plots, enter data, correct errors, and cancel registrations in the State Land Cadastre under specific circumstances. Currently, these responsibilities are limited to state cadastral registrars. However, the bill proposes to extend them to local council officials, military administration officials, administrators of administrative service centers, and certified land survey engineers (who are already entering land data under a pilot project). To obtain these powers, individuals must complete a free internship of up to one month with state or private cadastral registrars. Upon successful completion, they would receive a certificate granting them the right to operate within the cadastre system.

Currently, documents for land plot registration or cadastral updates are automatically assigned to state registrars to reduce corruption risks. However, land survey engineers who prepare the documentation can enter them into the cadastre themselves. If the bill is passed, local government officials and administrative service center employees authorized to carry out registration actions would receive this right. 

All registrars’ decisions would be made available in an electronic system and overseen by the Ministry of Agrarian Policy. Bill No. 12454 complements this legislation by introducing administrative liability for violations in maintaining the cadastre, extending it to all registrars. If a registrar delays data entry, requests unnecessary documents, or fails to meet legal deadlines, they could face a UAH 340–850 fine. However, such a small penalty is unlikely to be an effective deterrent against abuses.