On January 3, the President of Ukraine, Volodymyr Zelenskyi signed Law No. 4149-IX, aimed at deregulation and detinization of the used car trade market. The law cancels the obligation for sellers of used cars and spare parts to re-register their vehicles and to submit documents to service centers of the Ministry of Internal Affairs with the marking of the relevant military procurement centers.
As noted in the statement of the parliament, this law aims to bring the market out of the shadows and eliminate the schemes due to which the state budget did not receive taxes. The innovation will allow car dealers to avoid registering cars to themselves during resale, which will greatly simplify the trading process.
In the explanatory note to the draft law, it is stated that since 2010, entrepreneurs involved in the trade of used vehicles were obliged to register cars for themselves before selling them to end consumers. This required double registration: first for the enterprise, and then for the new owner, which created additional costs of time and resources.
Also, it used to be mandatory to obtain certificates of registration of a vehicle for military registration upon purchase and deregistration upon sale to the end user. The new law eliminates these requirements, which will help simplify procedures and increase market transparency.
