The Ministry of Internal Affairs stated that the implementation of the decision will increase the revenues provided to the state budget. At the same time, a fair approach will be taken when selling cars.
On Tuesday, October 1, the Council of Ministers adopted a decision on improving the procedure for commission trading in vehicles. The Ministry of Internal Affairs reported that from now on, a certificate confirming the actual cost of the equipment will be needed in order to conclude a purchase and sale contract.
As noted, the sale of two passenger cars per year is now subject to income tax at a rate of 5 percent per year for the second car and 18 percent per year for the third car. The sale of the first vehicle within a year is tax-free. Selling the first truck will cost an additional 5%, and selling the second and subsequent trucks will cost 18%.
The Ministry of Internal Affairs notes that when a person sells two cars or one truck, the service centers of the Ministry of Internal Affairs necessarily require a document on the average cost or an expert assessment of the cost of the vehicle.
“If a person sells his second passenger car of the year at the service center of the Ministry of Internal Affairs, with a certificate of average market value it will be worth UAH 450 thousand, and the tax at 5% will be 22.5 thousand. UAH,” explained Deputy Minister Bohdan Drapyaty.
But the value of a premium car “according to the seller” may be, for example, 15 thousand UAH, and the tax in this case will be 750 UAH.
“For example, a 2022 Tesla Model 3 was recently registered for 10,000 UAH. At the same time, the real average market value of such a car is 917,083 UAH,” added Bohdan Drapyaty.
The average market value can be easily checked on the website of the Ministry of Economy of Ukraine.
In Ukraine, which sold 470 thousand vehicles in 2023, there are currently 3.5 thousand vehicle wholesale and retail trade organizations.
As stated by the Ministry of Internal Affairs, it is envisaged that the implementation of this law will increase the revenues provided to the state budget and create a fair approach in the implementation of commercial activities for vehicle sales.
Let us also remind you that although the automobile sales volume in Ukraine decreased by half compared to 2021, luxury car purchases exceeded pre-war figures. Luxurious super and sports cars are in demand among Ukrainian millionaires.
Moreover Focus I wrote about how much customs clearance of a car imported from the EU costs in Ukraine.
Source: Focus
Ray Bly is an accomplished journalist in the field of Automobile. He currently works as a writer at 24 news breaker. With a deep understanding of the Automotive industry and a talent for uncovering the latest developments, Ray’s writing provides readers with insightful and informative coverage of the latest news and trends in the field.