Capital
Kyiv
Currency
Ukrainian hryvnia
Languages
Ukrainian, Russian
Population size
43.7M
Average Monthly Salary
€350
EU
Not Available
Region
Eastern-Europe
Gift Giving Norms
Gifts common at New Year; cultural sensitivities apply
Major Corporate Gift Days
New Year, Independence Day
Customs Complexity
High
VAT - Standard Rate
20%
Duty Free Threshold
€22
Ave Duty Rate
5%
1. Employee Merch vs. Gifts
Under Ukrainian law, non-cash benefits offered to employees may be deemed taxable if they are personal rather than a legitimate business necessity. The State Tax Service of Ukraine (Державна податкова служба України) clarifies whether items are essential for the job or purely personal perks.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Equipment
If branded uniforms, safety gear, or other attire is mandatory for day-to-day tasks, it usually does not count as taxable income.
Branded Office Accessories
T-shirts, mugs, or pens featuring a visible company logo, provided consistently across the workforce, are often viewed as corporate identity items rather than personal benefits.
Potentially Taxable Benefits
High-Value or Personal-Use Goods
Electronics, luxury apparel, or items with minimal relevance to daily duties can be reclassified as taxable salary. The employer then manages the applicable wage tax or social contributions.
Frequent Gifting
Repeated distributions of gifts within a single tax year can raise concerns over hidden remuneration. Seek local tax advice if you plan multiple merchandise drops for employees.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Gifts intended for promotion or relationship-building aims are typically tax-deductible, assuming costs are reasonable and documented. Repetitive or high-value gifts without commercial rationale might trigger scrutiny from tax authorities.
Compliance & Anti-Bribery
Ukraine enforces anti-corruption rules, particularly involving public officials or government-related dealings. Always maintain records of more substantial gifts to demonstrate transparency and proper intent.
1.3 Marketing Merch
Items (e.g., branded T-shirts, tote bags, small gadgets) dispensed at conferences, product launches, or fairs generally qualify as marketing expenses, provided invoices and distribution logs confirm their promotional role.
2. Shipping, Customs & Duties
Ukraine is not in the EU Customs Union, though the DCFTA with the EU can reduce or eliminate some duties for EU-origin goods if rules of origin apply.
2.1 Shipping
2.2 Importing
Import Duties & VAT
Goods from other global regions typically face standard customs duties plus Ukrainian VAT (20%) on (value + duties + shipping). Excise taxes might apply for specific product categories.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers duties and VAT, simplifying matters for the Ukrainian recipient.
Delivered At Place (DAP)
The recipient pays upon arrival, risking unexpected bills or delays if not forewarned.
2.4 With Monday Merch
We ship from our Dutch warehouse (in Rotterdam) and can provide the EUR.1 (or similar) if relevant—helping you maintain a tax compliant approach while minimising customs costs for EU-origin goods.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Does staff merch get taxed?
If purely personal, yes; if essential for the job with branding, likely no.
What about gifting to clients?
Deductible if it’s for promotion or good relations. High-cost gifts face extra scrutiny.
Cultural note?
Ukrainians appreciate genuine, modest gifts that build rapport—excess can be off-putting.
