“100 Euro” Rule applies for individuals

From July 01, 2019 will come into force changes to the Tax Code of Ukraine and the 100 Euro Rule begins to apply, which provides for a reduction to 100 euro the non-taxable total invoice value of imported goods sent into postal and express shipments to individuals. Now, if the value of the goods in the package totally exceeds 100 euros, the consignee individual is obliged to pay taxes. Previously, this limit was 150 euros.

“100 Euro” Rule applies for individuals. For legal entities and individual entrepreneurs, the duty-free limit remains at 150 euros. Taxation of parcels exceeding the limit of 100 euros depends on the total invoice value of the goods (batch of goods) – is the sum of all goods value received in one day at the TMM EXPRESS warehouse to the same consignee (individual) from one sender, regardless of the number of invoices.

The following taxes and customs duties are provided:

1) if the total invoice value of the goods is up to 100 EUR - duties and taxes are not collected;

2) if the total invoice value is more than 100 EUR, but not more than 150 EUR - VAT 20% is charged on the cost exceeding 100 EUR. Customs duty does not charge. Goods are cleared by customs declaration M 16;

3) if the total invoice value of the goods is more than 150 EUR, but not more than 10,000 EUR – customs duty of 10% is charged on the price in excess of 150 EUR and VAT on 20% on the cost in excess of 100 EUR. Goods are cleared by customs declaration M 16;

4) if the total invoice value of the goods is more than 10,000 EUR – customs duties are charged in accordance with the Law of Ukraine “On the Customs Tariff of Ukraine” No. 584-VII and VAT 20%. Goods are cleared by cargo customs declaration.

Draw attention! Cargoes that had been placed in the warehouse of “TMM Express” before July 01, 2019, and that are not issued for free circulation within the specified period, would be issued according to the new rules.