In Ukraine, when buying and selling cars, a certificate of their real market value will now be required. The relevant resolution was adopted by the Cabinet of Ministers on October 1, informs Ministry of Internal Affairs (MIA).
Under the new rules, the valuation of a car will not be based solely on the words of the seller, which will help reduce cases of tax evasion. This will avoid situations where the value of vehicles is artificially undervalued to reduce tax payments.
As Deputy Minister of Internal Affairs Bohdan Drapyatyi explained, for example, if a person sells a second car in a year, and it is valued at UAH 450,000, the 5% tax will amount to UAH 22,500. However, without a certificate, when the evaluation is carried out “from the words of the seller”, the car can be evaluated much cheaper, say, at 15,000 UAH, which leads to the payment of tax of only 750 UAH.
Drapyatyi gave an example when a 2022 Tesla Model 3 car was registered for UAH 10,000, while its real value was more than UAH 917,000.
Also, the new rules provide that the sale of two cars per year is taxed at 5% on the second car, and 18% on the third and more. The sale of the first car for the year remains tax-free. Sale of trucks: the first car — 5%, the second and more — 18%.
We will remind you that from October 1, new rules for car registration began to apply for Ukrainian refugees in Germany, which require the submission of documents with Latinized surnames, Ukrainian documents for a car and an insurance policy.
