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Deprivation of privileges for Chinese marketplaces: what will be the consequences?

 

 

Mass imports of goods into the territory of Ukraine without paying taxes through cross-border international shipments and distance selling distort the market and create unfair competition.

The Verkhovna Rada recently registered two bills No. 12429 and No. 12430! aimed at Deprivation of privileges  countering unfair competition through untaxed parcels from abroad. The announcement of these draft laws sparked a heated discussion on social networks and approximately the following concerns of citizens: “due to the new rules! Customs will “stop”! there will be a collapse …”! “costs for customs processes will exceed revenues from them …”! “people buy household items from China linkedin data at low prices and do not go to bourgeois stores”.

What is the essence of the problem?

The current legislation of Ukraine provides that goods sent by post for personal use worth up to 150 euros are not subject to taxation. Under such conditions! one individual! receiving only one postal item per day! can import goods exempt from Deprivation of privileges  paying any taxes in the amount of up to 4.5 thousand euros per month.

If a large group of individuals (for example! 100 passports) is organized! who the course provides will receive three items per day! then the amount of goods that will enter the customs territory of Ukraine every month will reach 1.34 million euros. This is already a significant industrial batch! from which taxes do not need to be paid. While similar imports for commercial purposes will be accompanied by VAT at the base rate of 20% and import duty.

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In this way! goods are moved across the customs border of Ukraine in such a way as to avoid paying customs duties or to minimize them. Therefore! it is difficult for Ukrainian goods to compete with Chinese imports. After all! mass aub directory imports of goods into the territory of Ukraine without paying taxes through cross-border international shipments and distance trading distort the market and create unfair competition.

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