The EU Wants to Tie Part of Its Aid to Ukraine to VAT on Parcels Cheaper Than €150

The European Union plans to tie part of its €90 billion aid package for Ukraine to compliance with IMF-backed tax reform measures, Bloomberg reports, citing sources familiar with the negotiations.

The measures include the introduction of a 20% VAT on foreign parcels. Meeting that condition would allow Ukraine to receive part of the next €8.4 billion tranche.

According to the agency, the payments are scheduled for June, September, and the end of 2026, but disbursement will depend on the adoption of the corresponding tax legislation changes.

“The European Union will tie part of its €90 billion aid package for Ukraine to an unpopular tax system change already demanded by the International Monetary Fund,” Bloomberg writes.

Although the Ukrainian government has already approved draft legislation on taxing international shipments, there are still not enough votes in the Verkhovna Rada to pass the measures.