TAX ALERT 16.10.2026 | Digest of Key Tax News

Postponement of the e-Excise implementation deadline to July 2027

On October 13, 2026, the Verkhovna Rada of Ukraine adopted in principle and in its entirety draft law No. 15532 “On Amendments to the Tax Code of Ukraine and Certain Other Laws of Ukraine Regarding the Postponement of the Implementation of Electronic Traceability for the Circulation of Alcoholic Beverages, Tobacco Products, and Liquids Used in Electronic Cigarettes”.  

We previously wrote on the postponement of the eExcise implementation deadline to November 1, 2026. Another postponement is now planned – this time from November 1, 2026, to July 1, 2027.

This decision is due to the need for additional testing, configuration, and integration of the electronic traceability system for excise goods.

VAT on International Parcels: Legislative Changes Adopted

On October 15, 2026, the Verkhovna Rada of Ukraine adopted in the second reading draft law No. 16051-1 “On Amendments to the Tax Code of Ukraine Regarding the Specifics of Value-Added Tax on Distance Sales of Goods Transported (Shipped) Across the Customs Border of Ukraine in International Postal and Express Shipments”. 

We wrote about the aforementioned draft law No. 16051-1. 

The changes are set to take effect no earlier than July 1, 2027, following the adoption of a corresponding resolution by the Cabinet of Ministers of Ukraine to ensure the possibility of implementing rules for the remote sale of goods.

New VAT and Excise Tax Rules for the Electricity Market: Ministry of Finance Proposes Amendments to the Tax Code

On October 7, 2026, the Ministry of Finance of Ukraine published a draft law “On Amendments to the Tax Code of Ukraine Regarding the Alignment of Indirect Taxation Conditions for Electricity Market Participants with EU Legislation”, aimed at harmonizing Ukrainian tax legislation with European Union law.

The draft provides for updating the rules for taxing electricity supply transactions with value-added tax and excise tax. Specifically, it proposes:

• introduce definitions for the terms “taxable person” and “taxable dealer,” as well as create a registry of taxable dealers;
• to determine the place of supply of electricity as the place of its consumption;
• apply a reverse VAT charge mechanism to electricity supply transactions with taxable dealers;
• to exempt the import of electricity into the customs territory of Ukraine from VAT;
• set the excise tax rate on electricity at 2.8 euros per MWh in accordance with the approaches provided for by EU legislation.

In addition, the draft law defines excise tax payers, the taxable base, exemptions from taxation, as well as the procedure for calculating and the deadlines for paying the tax.

If the law is adopted, the proposed changes will take effect on the date Ukraine becomes a full member of the European Union. 

Simplifying VAT Administration: Revised Bill Adopted as a Basis

On October 13, 2026, the Verkhovna Rada of Ukraine adopted as a basis the revised draft law No. 16037-d “On Amendments to the Tax Code of Ukraine Regarding the Simplification of Value-Added Tax Administration”.

We previously wrote about the earlier version of draft law No. 16037, which provided for changes regarding VAT, particularly concerning the reporting requirements for individual entrepreneurs and the preparation of tax invoices. The revised version clarifies certain provisions and expands the list of grounds for conducting unscheduled documentary audits.

Specifically, the revised draft law provides for:

• allowing all VAT payers to automatically pre-fill tax returns and tax invoices based on information available in the information systems of the State Tax Service of Ukraine (STS), in accordance with the procedures and to the extent specified by the Ministry of Finance of Ukraine;
• allowing individual entrepreneurs who are VAT payers to independently choose between a quarterly or monthly reporting period;
• increasing the threshold amount for budgetary refunds and/or negative VAT balances – the declaration of which serves as grounds for conducting an unscheduled documentary audit – from 100,000 UAH to 1 million UAH;
• allowing the issuance of consolidated tax invoices when supplying goods or services to non-VAT-registered customers in cases where advance payment is received from them, without requiring compliance with the requirements regarding the continuity and regularity of supply.