The Cabinet of Ministers of Ukraine has changed the procedure for commission trade in vehicles, in particular, regarding the mandatory submission of a document confirming the value of the vehicle to conclude a sale and purchase agreement. This was reported by Komersant ukrainskyi
with reference to the Ministry of Internal Affairs.
As of today, the sale of two or more cars per year is subject to a 5% income tax on the 2nd car, and 18% on the 3rd car per year or more. Sales of the first vehicle within a year are tax-free. The sale of the first truck is subject to 5% tax, and the second and subsequent trucks to 18% tax.
When a person sells a passenger car (two or more) or a truck at the service centres of the Ministry of Internal Affairs of Ukraine, it is mandatory to provide a certificate of average value or an expert assessment of the vehicle’s value. Thus, taxes are paid in full.
“For example, if a person sells his or her second car of the year at a service centre of the Ministry of Internal Affairs, the vehicle will be valued at UAH 450,000 with a certificate of average market value, and the 5% tax will be UAH 22.5 thousand. Instead, a trade organisation assesses the value of a car not on the basis of an official document, but “according to the seller”, for example, UAH 15 thousand, and pays a tax of UAH 750,” explained Deputy Minister of Internal Affairs of Ukraine Bohdan Drapyatyi.
He added that the cost of a premium car for UAH 15 thousand is not an allegory, but a reality.
“For example, a 2022 Tesla Model 3 was recently registered for UAH 10,000. At the same time, the real average market value of such a car is UAH 917,083,” said Drapyatyi.
The average market value can be easily checked on the website of the Ministry of Economy of Ukraine.
As of August 2024, there were 3.5 thousand entities engaged in wholesale and retail trade in vehicles in Ukraine. In 2023, 470 thousand cars were sold through trade organisations.
The implementation of the act is expected to increase revenues to the state budget of Ukraine and establish a fair approach to the conduct of business activities related to the sale of vehicles.